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PITTSBURGH - Predictive Oncology Inc. (NASDAQ:POAI), a micro-cap biotech with a market capitalization of $7.15 million, has secured a $10 million Securities Purchase Agreement with Yorkville Advisors Global, LP to support expansion plans for its ChemoFx tumor profiling technology, according to a company statement released Tuesday. InvestingPro data shows the company maintains a healthy balance sheet with more cash than debt, though it’s currently experiencing rapid cash burn.
The agreement provides Predictive Oncology with the option to sell shares to Yorkville when market conditions are favorable, without warrants or other financial derivatives attached.
The AI-driven drug discovery company plans to use the funding to expand ChemoFx availability in the U.S. market and launch the technology in Europe. ChemoFx is the company’s proprietary assay that tests multiple chemotherapies on a patient’s cancer cells before treatment to help determine which options may be most effective.
"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," said Raymond Vennare, CEO and Chairman of Predictive Oncology.
The company stated it aims to extend ChemoFx beyond gynecological cancers to other tumor types including breast, colon and lung cancer.
Predictive Oncology maintains a biobank of 150,000 tumor samples across 137 cancer types, which it uses to develop AI-powered models for drug discovery, biomarker identification, and drug repurposing initiatives.
The company recently developed machine learning models with UPMC Magee-Women’s Hospital that predict survival outcomes in ovarian cancer patients, and has identified novel ovarian cancer biomarkers linked to patient survival and drug response.
Predictive Oncology is headquartered in Pittsburgh and trades on the Nasdaq under the ticker POAI.
In other recent news, Predictive Oncology Inc. has made several noteworthy announcements. The company reported a $10 million equity purchase agreement with YA II PN, LTD, managed by Yorkville Advisors Global, LP. Under this agreement, Predictive Oncology can sell up to $10 million of its common stock, providing a flexible funding source for its ongoing drug discovery and business development initiatives. The company has full discretion over the timing and amount of stock sales, with no associated warrants or derivatives. Additionally, Predictive Oncology faces a compliance challenge after receiving a notice from Nasdaq for not meeting the minimum bid price requirement, giving them until January 5, 2026, to rectify the situation.
Furthermore, the company is preparing to defend itself in a legal dispute with Renovaro, Inc., with a trial date set for November 2025. In a significant advancement, Predictive Oncology has developed predictive tumor response models for 21 molecules using its AI platform, PEDAL, marking progress in AI-enabled drug discovery. This platform boasts a 92% accuracy in predicting tumor responses, enhancing early-stage drug discovery. These developments highlight Predictive Oncology’s ongoing efforts in AI-driven drug discovery and its strategic initiatives to secure funding and address legal challenges.
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