Predictive Oncology Inc has entered into definitive agreements to sell shares and units with multiple institutional investors that are expected to generate gross proceeds of $7.2 million, the company announced.
In the first offering, the company will issue and sell more than 3.8 million shares at a price of $0.60 per share to several institutional investors for gross proceeds of $2.3 million.
Predictive Oncology also agreed to issue up the same number of unregistered share purchase warrants exercisable at $0.70 per share to those investors. The warrants will become exercisable after six months and expire after five and a half years, the company said.
READ: Predictive Oncology reports sharply higher consolidated revenue in 1Q 2022
In the second offering, the company agreed to issue and sell over 8.1 million shares of stock at a price of $0.60 per share to multiple institutional investors, for gross proceeds of $4.9 million.
As part of the deal, more than 16.3 million warrants previously issued to those investors at exercise prices between $1 and $2 per share will be reduced to $0.70 per share. They will also become eligible after six months and expire after five and a half years.
The company expects the offerings to occur on Wednesday. Net proceeds are expected to be used for working capital purposes.
Predictive Oncology is a knowledge-driven company focused on applying artificial intelligence to develop optimal cancer therapies, which can lead to more effective treatments and improved patient outcomes.
The Minnesota-based company uses a database of 150,000-plus cancer tumors, categorized by patient type, against drug compounds to help the drug discovery process and increase the probability of success.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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