- POAI completes two separate fundraising initiatives: private placement, direct offering.
- Two fundraising campaigns expected to result in $17.6 million, $7.4 million respectively.
- Predictive Oncology plans to use funds to pay off debt as well as for working capital, general corporate purposes.
Predictive Oncology (NASDAQ: POAI), a knowledge-driven company focused on applying artificial intelligence (“AI”) to personalized medicine and drug discovery, has announced two funding initiatives that together total an estimated $25 million. The company has entered into securities purchase agreements with institutional and accredited investors (https://ibn.fm/WH4nw) to raise approximately $17.6 million and is involved in a direct offering that is expected to raise $7.4 million (https://ibn.fm/uSv23).
The securities purchase agreement was comprised of a total of 9,043,766 shares of common stock and warrants, offered at a purchase price of $1.95 per share. The private placement was expected to close around Feb. 22, 2021. In the announcement of the private placement, Predictive Oncology noted that it planned to use some $5.88 million of the net proceeds from the placement to pay off debt; the company has earmarked the remaining funds for general corporate purposes.
The direct offering is also between POAI and select institutional and accredited investors. Consisting of approximately 4,222,288 shares of common stock offered at a purchase price of $1.75 per share, the offering was expected to close approximately Feb. 26, 2021. The company noted that it plans to use the $7.4 million net proceeds from this placement for working capital purposes.
In the past, the pharmaceutical industry has invested heavily in genomics and big data, hoping to better understand individual patient’s genomes and deliver targeted therapeutics. In reality, the use of genomics alone has proven to be disappointing. Predictive Oncology is confident that a multi-omic approach offers much greater chance of success. Unfortunately, few comprehensive, multi-omic datasets exist, and such data is difficult to access quickly as it is both costly and time consuming to initiate prospective data collection – especially in cancer, an area where Predictive Oncology is focused.
POAI, however, is a leader in the nascent multi-omic game. The company has spent years gathering an estimated 150,000 clinically validated cases on its molecular information platform, with more than 38,000 of those specific to ovarian cancer. The data in POAI’s molecular information platform are highly differentiated, having both drug response data and access to historical outcome data from those patient samples. Predictive Oncology is focused on generating additional sequence data from these tumor samples to deliver on the unmet market need across the pharmaceutical industry for a multi-omic approach to new drug development and, most importantly, improved patient outcomes. The recently acquired funds will go far in assuring the progress of this work.
POAI is bringing precision medicine, or tailored medical treatment using the individual characteristics of each patient, to the treatment of cancer. Through its Helomics division, the company leverages its unique, clinically validated patient derived (“PDx”) smart tumor profiling platform to provide oncologists with a roadmap to help individualize therapy. In addition, the company is leveraging artificial intelligence and its proprietary database of over 150,000 cancer cases tumors to build AI-driven models of tumor drug response to improve outcomes for the patients of today and tomorrow.
For more information, visit the company’s website at www.Predictive-Oncology.com.
NOTE TO INVESTORS: The latest news and updates relating to POAI are available in the company’s newsroom at http://ibn.fm/POAI
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