Predictive Oncology Announces Registered Direct Offering Priced At-The-Market Under Nasdaq Rules

Rhea-AI Summary

Predictive Oncology (NASDAQ: POAI), an AI-driven drug discovery and biologics company, has announced a registered direct offering of 363,336 shares of common stock priced at $1.50 per share. The offering, priced at-the-market under Nasdaq rules, is expected to generate gross proceeds of $545,004 before deducting fees and expenses.

The offering is expected to close on February 19, 2025, with H.C. Wainwright & Co. serving as the exclusive placement agent. The company plans to use the net proceeds for working capital and general corporate purposes. The offering is being made pursuant to an effective S-3 shelf registration statement previously filed with the SEC.

Positive

• Secured immediate funding of $545,004 through equity offering
• Offering priced at-the-market, minimizing price disruption
• Strengthens working capital position

Negative

• Dilution of existing shareholders through issuance of 363,336 new shares
• Small offering size suggests funding capacity
• Additional offering expenses will reduce net proceeds available to company

Insights

Financial Analyst

This registered direct offering reveals concerning signals about Predictive Oncology's financial position and strategy. The company is raising a modest $545,004 through the sale of 363,336 shares at $1.50 per share - a 23% discount to the current market price, which will result in immediate dilution for existing shareholders.

The small size of this capital raise is particularly noteworthy. For a company with a $10.8M market cap in the capital-intensive AI-driven drug discovery space, raising just over half a million dollars suggests this is likely a short-term bridge financing rather than a strategic growth investment. This could indicate immediate cash flow pressures, as companies typically prefer larger raises to minimize the frequency of dilutive events and associated costs.

The choice of a registered direct offering, while faster and less complex than a traditional public offering, often signals urgency in capital needs. The significant discount to market price, combined with the modest size of the raise, suggests institutional interest and potentially challenging negotiations with the placement agent, H.C. Wainwright & Co.

The vague designation of proceeds for "working capital and general corporate purposes" provides little strategic clarity and may indicate these funds are primarily for maintaining operations rather than advancing specific growth initiatives. Investors should closely monitor the company's cash burn rate and potential need for additional financing in the near term, as this small raise might not provide sufficient runway for meaningful operational progress.

PITTSBURGH, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Predictive Oncology Inc. (NASDAQ: POAI) (“Predictive Oncology” or the “Company”), a leader in AI-driven drug discovery and biologics, today announced that it has entered into definitive agreements for the purchase and sale of 363,336 shares of common stock at a purchase price of $1.50 per share in a registered direct offering priced at-the-market under Nasdaq rules. The closing of the offering is expected to occur on or about February 19, 2025, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The gross proceeds to the Company from the offering are expected to be $545,004 before deducting placement agent fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.

The common stock described above are being offered by the Company pursuant to a “shelf” registration statement on Form S-3 (File No. 333- 279123) that was declared effective by the Securities and Exchange Commission (the “SEC”) on May 21, 2024. The offering of the shares of common stock is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus relating to the registered direct offering will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, on the SEC’s website at http://www.sec.gov or by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, New York 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Predictive Oncology
Predictive Oncology is on the cutting edge of the rapidly growing use of artificial intelligence and machine learning to expedite early drug discovery and enable drug development for the benefit of cancer patients worldwide. The company’s scientifically validated AI platform, PEDAL, is able to predict with 92% accuracy if a tumor sample will respond to a certain drug compound, allowing for a more informed selection of drug/tumor type combinations for subsequent in-vitro testing. Together with the company’s vast biobank of more than 150,000 assay-capable heterogenous human tumor samples, Predictive Oncology offers its academic and industry partners one of the industry’s broadest AI-based drug discovery solutions, further complemented by its wholly owned CLIA laboratory facility. Predictive Oncology is headquartered in Pittsburgh, PA.

Investor Relations Contact:
Tim McCarthy
LifeSci Advisors, LLC
tim@lifesciadvisors.com

Forward-Looking Statements:
Certain matters discussed in this release contain forward-looking statements, including, without limitation, the completion of the offering, the satisfaction of customary closing conditions related to the offering, the anticipated use of proceeds from offering. These forward-looking statements reflect our current expectations and projections about future events and are subject to substantial risks, uncertainties and assumptions about our operations and the investments we make. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue and financial performance, projected costs, prospects, changes in management, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “would,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors including, among other things, factors discussed under the heading “Risk Factors” in our filings with the SEC. Except as expressly required by law, the company disclaims any intent or obligation to update these forward-looking statements.

FAQ

What is the price per share for POAI's February 2025 direct offering?

The direct offering is priced at $1.50 per share.

How many shares is POAI offering in its February 2025 registered direct offering?

Predictive Oncology is offering 363,336 shares of common stock.

What are the expected gross proceeds from POAI's February 2025 offering?

The expected gross proceeds from the offering are $545,004 before deducting fees and expenses.

How will POAI use the proceeds from its February 2025 offering?

The company intends to use the net proceeds for working capital and general corporate purposes.

Who is the placement agent for POAI's February 2025 registered direct offering?

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.