- POAI improved liquidity position, streamlined capital structure with conversion of $2.1 million convertible note
- Business highlights include continued initial study to sequence ovarian tumors, validate “reach-back”
- Company closed transaction resulting in gross cash proceeds of approximately $2.2 million
Predictive Oncology (NASDAQ: POAI), a knowledge-driven company focused on applying artificial intelligence (“AI”) to personalized medicine and drug discovery, announced Q1 2020 financial results and business highlights (http://ibn.fm/mFwpq) as well as receipt of cash proceeds of $2.2 million from exercise of warrants (http://ibn.fm/2n6x5).
“[POAI] improved our liquidity position and streamlined our capital structure with the conversion of a $2.1 million convertible note, previously held by me, to newly issued equity,” said POAI CEO Dr. Carl Schwartz. “This action demonstrates my confidence in the commercial viability of our work, and when combined with the additional capital we raised through an equity offering, provides us with the cash runway to fund key clinical, regulatory and operational milestones for the next several quarters. In addition, we have significantly reduced the corporate structure of our Skyline Medical business to enable it to operate independently as we consider strategic alternatives for this business.”
According to Predictive Oncology’s report, for the quarter ended March 31, 2020, company revenues increased to $295,943 compared with $255,241 for the first quarter of 2019. Gross margins remained strong at 69% for the same period, compared with 71% in the 2019 period. Other Q1 highlights included the following:
- Continued initial study to sequence ovarian tumors and validate “reach-back” process; study is on schedule to be completed Q3 2020
- Signed LOI to acquire Quantitative Medicine, a biomedical analytics and computational biology company; closed early July Q3 2020
- Signed a term sheet to acquire both BioDtech and Soluble Therapeutics and its HSC(TM) Technology; closed in Q2 2020
In addition, POAI announced the closing of a previously announced transaction resulting in gross cash proceeds of approximately $2.2 million paid to the company, prior to deducting placement agent fees and offering expenses, through the exercise of certain existing warrants by several holders to purchase an aggregate of up to 1,396,826 shares of common stock at an exercise price of $1.575 per share. The shares of common stock issued upon exercise of the existing warrants are registered for resale pursuant to a registration statement on Form S-1.
In consideration for the immediate exercise of the existing warrants for cash, the exercising holders received new unregistered warrants to purchase up to an aggregate of 1,396,826 shares of common stock at an exercise price of $1.80 per share with an exercise period of five and one-half years from the issuing date. Predictive Oncology plans to use these funds for working capital and general corporate purposes.
POAI is bringing precision medicine, or tailored medical treatment using the individual characteristics of each patient, to the treatment of cancer. Through the company’s Helomics division, the company leverages its unique, clinically validated patient derived (“PDx”) smart tumor profiling platform to provide oncologists with a road map to help individualize therapy. In addition, the company is utilizing 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
