Predictive Oncology Inc. (NASDAQ:POAI) said it has closed two concurrent offerings with several institutional investors, raising gross proceeds of approximately $7.2 million before placement agent fees and other offerings expenses.
The company intends to use the net proceeds from the offerings for working capital purposes.
In the first offering, the company sold 3,837,280 shares at a purchase price of $0.60 each in a registered direct offering for gross proceeds of approximately $2.3 million. The company also issued to these investors unregistered warrants to purchase up to an aggregate of 3,837,280 shares of its common stock. The warrants have an exercise price of $0.70 per share, and will become exercisable six months following the date of issuance and expire five and one-half years from the date of issuance.
READ: Predictive Oncology to raise $7.2M in multiple offerings
In the second offering, the company sold 8,162,720 shares of its common stock at a purchase price of $0.60 each in a concurrent registered direct offering, for gross proceeds of approximately $4.9 million. The company also amended certain existing warrants for the purchase of up to an aggregate of 16,325,435 shares that were previously issued to those investors. The previous exercise prices ranging from $1.00 to $2.00 per share were reduced to $0.70 per share. The warrants cannot be exercised until six months after the closing of the registered direct offering while the expiration date has been extended to five and one-half years following the closing of the registered direct offering.
Predictive Oncology is 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 the author at jon.hopkins@proactiveinvestors.com