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PITTSBURGH - Predictive Oncology Inc. (NASDAQ:POAI), currently showing a market capitalization of $7.6 million and rated as having WEAK financial health according to InvestingPro analysis, has entered into a standby equity purchase agreement with YA II PN, LTD, an investment fund managed by Yorkville Advisors Global, LP, the AI-driven drug discovery company announced Tuesday.
Under the agreement, Predictive Oncology has the right to sell up to $10 million worth of its common stock to Yorkville, which is obligated to purchase the shares. The company will maintain complete discretion over the timing and amount of any stock sales. This funding comes as the company faces significant cash burn rates, though InvestingPro data shows it maintains more cash than debt on its balance sheet.
The arrangement includes no warrants, derivatives, or other share classes, and Predictive Oncology is not required to utilize any portion of the $10 million available under the agreement. There are no minimum commitments, use penalties, or restrictions on the company’s operating activities.
Predictive Oncology indicated the funding mechanism would support its ongoing drug discovery initiatives, biomarker research, drug repurposing efforts, and business development opportunities with biopharmaceutical companies.
The Pittsburgh-based company specializes in AI and machine learning technology for early drug discovery. Its AI platform, PEDAL, reportedly predicts with 92% accuracy whether tumor samples will respond to specific drug compounds, potentially streamlining the selection of drug/tumor combinations for laboratory testing.
The company maintains a biobank containing over 150,000 assay-capable human tumor samples and operates a wholly owned CLIA laboratory facility.
Details of the standby equity purchase agreement are available in Predictive Oncology’s Form 8-K filing with the Securities and Exchange Commission, according to the company’s press release statement.
In other recent news, Predictive Oncology Inc. has announced a $10 million standby equity purchase agreement with a fund managed by Yorkville Advisors Global. This agreement allows Predictive Oncology to sell its common stock as needed, providing a flexible funding source to support its drug discovery and business development initiatives. The company retains control over the timing and amount of any sales, with no obligations or penalties attached. Additionally, Predictive Oncology is preparing for a legal dispute with Renovaro, Inc., with a trial scheduled for November 2025. The company intends to defend against what it describes as baseless claims in this upcoming court case.
In another development, Predictive Oncology has made strides in AI-enabled drug discovery by developing predictive tumor response models for 21 molecules. This advancement highlights the company’s use of its extensive biobank and AI platform to enhance drug discovery processes. The company’s AI platform, PEDAL, has demonstrated a 92% accuracy rate in predicting tumor responses to drug compounds, underscoring its potential in early-stage drug development. These recent developments reflect Predictive Oncology’s ongoing efforts to integrate AI and machine learning in oncology drug discovery.
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