Predictive Oncology Inc. (POAI) and Renovaro Enter Merger Agreement to Accelerate Cancer Treatment Innovation

In a move aimed at bolstering the fight against cancer, Predictive Oncology Inc. has entered into a merger agreement with Renovaro, Inc., combining their resources to accelerate drug discovery and improve patient outcomes. The binding letter of intent, announced on January 6, 2025, outlines the terms under which Predictive Oncology will be acquired by Renovaro in exchange for preferred stock.

Strengthening Cancer Research and Drug Development

Both companies share a commitment to improving cancer treatment through earlier diagnosis, biomarker discovery, and the development of targeted therapies. Their collaboration promises to harness cutting-edge artificial intelligence (AI) and machine learning (ML) technologies, leveraging complementary technical platforms to enhance drug development efforts. The merger also aims to reduce the risk associated with drug discovery, ultimately speeding up the process of delivering new therapies to patients.

“This merger represents a unique opportunity to leverage our shared expertise and AI-driven platforms to transform cancer research and therapy,” said Predictive Oncology CEO, [CEO Name]. “By joining forces with Renovaro, we can unlock synergies that will not only advance scientific innovation but also streamline our operations, making a meaningful impact on patient outcomes.”

Strategic Financial and Operational Benefits

The merger is expected to result in significant operational cost savings, with estimates indicating a reduction of more than 30% in combined operating expenses in the near term. These savings will help both companies navigate the highly competitive and costly cancer drug development landscape more efficiently.

Under the terms of the merger, Predictive Oncology shareholders will receive a newly created series of preferred stock from Renovaro on a 1:1 exchange basis. The preferred stock will be redeemable for $3.00 per share after 18 months. Additionally, the preferred stock can be converted into freely traded Renovaro common stock at a 1:1 ratio, contingent on Renovaro’s common stock achieving a trading price of $4.50 per share for 30 consecutive trading days.

Renovaro also has the option to redeem the preferred stock for cash at $3.00 per share under certain conditions, including if Renovaro’s stock price falls below $3.00 per share.

Key Terms and Conditions

The merger is contingent on a minimum fundraising of $15 million by Renovaro, as well as approval by the shareholders of Predictive Oncology. Should Predictive Oncology’s shareholders fail to approve the deal, Renovaro will still be granted a two-year, royalty-free license to access Predictive Oncology’s biobank of tumor samples and tumor-specific 3D cell culture models.

In a separate provision, Renovaro has agreed to purchase up to 2.33 million shares of Predictive Oncology’s common stock at $1.07 per share, provided that holders of Predictive Oncology’s Series A and Series B warrants do not exercise their options before January 15, 2025.

Both parties have committed to finalizing the merger agreement by February 28, 2025, though there can be no guarantee of a successful transaction until that time.

Future Outlook

The merger holds the promise of a new chapter for both companies, bringing together their cutting-edge technologies and enhancing their ability to drive cancer research forward. By combining their resources and expertise, Predictive Oncology and Renovaro aim to reduce the risk of drug development and deliver life-changing therapies to cancer patients more efficiently.

While the outcome of the merger remains uncertain, with the formal agreement still pending shareholder approval and fundraising milestones, both companies are optimistic about the potential benefits this strategic partnership will bring.

As the deal progresses, further updates will be provided to shareholders and the public as appropriate.