Predictive Oncology Issues Shareholder Letter: Well Financed to Support Expanded U.S. Availability and E.U. Launch of ChemoFx® and Pursuit of Other High-Value AI-Driven Drug Discovery and Development Opportunities

Rhea-AI Summary

Predictive Oncology (NASDAQ: POAI) has secured a $10 million Securities Purchase Agreement with Yorkville Advisors Global to support its growth initiatives. The company is expanding the availability of its ChemoFx® proprietary live-cell tumor profiling assay in the U.S. and launching in Europe.

ChemoFx leverages the company's database of 150,000 tumor samples across 137 cancer types to predict chemotherapy responses, helping oncologists make better treatment decisions. The company plans to extend beyond gynecological cancers into breast, colon, and lung cancers. Additionally, POAI is advancing its AI-driven drug discovery initiatives, including successful development of machine learning models for ovarian cancer outcomes in collaboration with UPMC Magee-Womens Hospital.

Positive

• Secured $10 million flexible funding through Securities Purchase Agreement with no warrants or derivatives
• Plans to expand ChemoFx beyond gynecological cancers into breast, colon and lung cancers
• Possesses valuable database of 150,000 tumor samples across 137 cancer types
• Successfully developed AI-powered models predicting cancer survival outcomes
• Identified three drug repurposing candidates for ovarian and colon cancer

Negative

• Current ChemoFx product limited to gynecological cancers
• Funding agreement may lead to share dilution through stock sales
• European market expansion still in early planning stages

Insights

Biotech Investment Analyst

POAI secured $10M funding to expand ChemoFx commercialization while advancing AI-drug discovery initiatives, positioning for multi-market revenue growth.

This shareholder letter outlines Predictive Oncology's strategic roadmap focused on two parallel growth initiatives. The company has secured a $10 million securities purchase agreement with Yorkville Advisors, providing flexible capital without warrants or derivatives - a relatively favorable financing structure compared to typical biotech funding deals that often include dilutive warrants.

The primary growth driver is the planned expansion of ChemoFx, their proprietary tumor profiling assay that helps oncologists select effective chemotherapies by testing patient-derived cancer cells. Currently focused on gynecological cancers, management intends to expand into breast, colon, and lung cancers - significantly enlarging their addressable market. The European launch represents an entirely new revenue opportunity, though regulatory pathways and reimbursement strategies weren't detailed.

What's particularly valuable is how ChemoFx feeds their second growth initiative - AI-driven drug discovery. Their biobank of 150,000 tumor samples across 137 cancer types provides a competitive advantage in creating predictive models. The letter references specific technical progress in creating multi-omic machine learning models for ovarian cancer survival prediction and biomarker identification. Their drug repurposing efforts represent a capital-efficient approach to drug development by identifying new applications for existing compounds.

The high-throughput screening market projection ($69.5 billion by 2032 at 12.18% CAGR) highlights the significant opportunity, though POAI's potential market share remains unclear. The company appears to be positioning for either independent development or strategic partnerships, maintaining optionality while controlling costs. Their approach of integrating real-world tumor heterogeneity addresses a critical industry pain point in early-stage drug development.

$10 million securities purchase agreement provides efficient and flexible funding in support of strategic multi-million dollar growth initiatives

Discussions underway to expand adoption of ChemoFx in the U.S. and accelerate initial launch in Europe

PITTSBURGH, July 15, 2025 (GLOBE NEWSWIRE) -- Predictive Oncology Inc. (NASDAQ: POAI), a leader in AI-driven drug discovery, today issued the following shareholder update:

To my fellow Shareholders,

The past several weeks have been particularly noteworthy and productive at Predictive Oncology, and I wanted to take this opportunity to provide a brief recap of recent developments.

Preparing for aggressive market expansion of ChemoFx^® in the U.S. and de novo Launch in Europe

I’d like to begin with ChemoFx, which is our proprietary live-cell tumor profiling assay that uses a patient’s own cells to measure chemotherapy responses in vitro, providing personalized guidance for treatment selection. By testing multiple chemotherapies on a patients’ cancer cells before treatment selection, ChemoFx helps determine which chemotherapies are more likely to be effective on the tumor and which are less likely to provide benefit to the patient. With these data in-hand, oncologists can make better and faster treatment decisions – eliminating the current “trial-and-error” approach – which could go a long way towards improving patient outcomes while saving precious time and money.

This flagship assay, which stands as a renewable and extensible asset for the Company, was the primary assay by which the Company acquired more than 150,000 tumor samples, analyzed more than twenty-five years of drug response data and represents a significant opportunity for the Company to steadily augment the biobank, consistently develop novel drug response data and increase the likelihood of recurring revenue. The groundwork to expand availability of ChemoFx in the U.S is already underway, including meaningful and productive discussions with potential channel partners, and other end-users, including R&D-based pharmaceutical manufacturers.

As we look to develop the next generation of ChemoFx, the Company anticipates the ability to extend beyond gynecological cancers, into other tumor types, including breast, colon and lung.

More importantly, the ability to obtain a patient tumor sample and monitor its growth and drug response as it transitions from a 2D cell culture to cryopreservation and then to 3D cell spheroids exemplifies the relevance and availability of our samples for high-throughput drug discovery, personalized medicine, and biomarker discovery. The utilization of cryopreserved dissociated tumor cells (DTCs) represents a scalable resource for research and clinical trials with viable primary tumor material.

The high throughput screening [HTS] market is projected to reach $69.5 billion by 2032, reflecting a CAGR of 12.18%, according to SNS Insider research. There is a growing adoption of 3D cell cultures which provide more physiologically relevant models for screening, enhancing the predictive power of HTS assays.

Collectively, these capabilities directly support the Company’s AI-driven drug discovery initiatives by generating high-quality data that feeds into predictive models and supports biomarker discovery, companion diagnostics, and clinical trial design.

Core AI-Driven Drug Discovery, Biomarker Discovery and Drug Repurposing Initiatives Continue to Advance

In parallel with our ChemoFx commercialization activities, we remain focused on our drug and biomarker discovery and drug repurposing initiatives that we will advance either independently or in collaboration with strategic partners.

Our ability to integrate patient and tumor heterogeneity into the earliest phases of drug and biomarker discovery, driven by our biobank of 150,000 tumor samples across 137 cancer types, makes us truly unique in an industry that is growing and evolving rapidly.

We previously talked about our successful work with UPMC Magee-Womens Hospital, where we successfully developed AI-powered multi-omic machine learning models that predict short- and long-term survival outcomes in ovarian cancer patients—outperforming models based solely on clinical data.

Building on the success of the Magee study, we identified novel ovarian cancer biomarkers linked to patient survival and drug response using advanced deep learning methods. Models like this have applications well beyond drug and biomarker discovery and can also be integrated into day-to-day clinical practice, helping guide treatment decisions and potentially improving patient management and outcomes.

Regarding drug repurposing, we previously talked about our success screening a curated set of such compounds using active machine learning that led to the identification of three candidates worth re-evaluating in ovarian and colon cancer. We are building on this success by applying this approach to a broader range of publicly available compounds. The ability to transition a shelved drug candidate back into clinical development is of enormous value to the biopharmaceutical industry, and I believe we are at the forefront of this initiative.

Securities Purchase Agreement Provides an Efficient and Flexible Source of Funding

To efficiently and effectively execute on the US expansion and EU launch of ChemoFx, and simultaneously pursue the emerging opportunities utilizing our core AI and machine learning capabilities, we were very pleased to have recently announced a $10 million Securities Purchase Agreement (SPA) with Yorkville Advisors Global, LP. This agreement, which was executed at terms that we believe are attractive to our company, provides us with the right, but not the obligation, to opportunistically sell POAI shares to Yorkville when market conditions are deemed to be favorable. Notably, there are no warrants or other financial derivatives associated with the SPA.

We regard this agreement with Yorkville as a true partnership that we think will be mutually beneficial, and we are grateful to them for their support of our company and our vision.

In closing, we continue to methodically take steps to create a solid foundation from which to drive meaningful and sustained growth in 2026 and beyond. I would like to once again thank you, our shareholders, for your continued support. I believe we are uniquely positioned to lead the next wave of advancement in precision oncology, and I am very optimistic about what the future holds for our industry and our company.

Sincerely,

Raymond

Raymond Vennare
Chief Executive Officer and Chairman of the Board, Predictive Oncology

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 complimented by its wholly owned CLIA laboratory facility. Predictive Oncology is headquartered in Pittsburgh, PA.

Investor Relations Contact:
Mike Moyer
LifeSci Advisors, LLC
mmoyer@lifesciadvisors.com

Forward-Looking Statements

Certain statements made in this press release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward- looking statements reflect Predictive Oncology’s current expectations and projections about future events and are subject to substantial risks, uncertainties and assumptions about Predictive Oncology’s operations and the investments Predictive Oncology makes. 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. Predictive Oncology’s 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 Predictive Oncology’s filings with the SEC. Except as expressly required by law, Predictive Oncology disclaims any intent or obligation to update these forward-looking statements. Predictive Oncology does not give any assurance that Predictive Oncology will achieve its expectations described in this press release.

FAQ

What is the size of Predictive Oncology's (POAI) new funding agreement?

POAI secured a $10 million Securities Purchase Agreement with Yorkville Advisors Global, LP, with flexible terms and no warrants or financial derivatives.

How many tumor samples does POAI's ChemoFx database contain?

Predictive Oncology's database contains 150,000 tumor samples across 137 cancer types, collected over more than 25 years of drug response data.

What types of cancer will POAI's ChemoFx expand into?

POAI plans to expand ChemoFx beyond gynecological cancers into breast, colon, and lung cancers.

What is the projected market size for high throughput screening by 2032?

According to SNS Insider research, the high throughput screening market is projected to reach $69.5 billion by 2032, with a CAGR of 12.18%.

How does POAI's ChemoFx technology work?

ChemoFx is a live-cell tumor profiling assay that tests multiple chemotherapies on a patient's own cancer cells before treatment, helping determine which treatments are likely to be most effective.