Predictive Oncology has Announced Agreement to be Acquired by Renovaro

On Jan. 06, 2025 Predictive Oncology has announced that it has entered into a binding letter of intent with Renovaro for Predictive Oncology to be acquired by Renovaro in exchange for preferred stock of Renovaro.

Predictive Oncology and Renovaro are committed to enhancing cancer patient outcomes through improved early diagnosis, biomarker identification, and targeted therapies. The two companies plan to merge their proprietary AI and machine learning platforms, which complement each other technically, to expedite drug discovery and mitigate the risks associated with drug development.

Additionally, this merger is expected to yield significant cost savings, aiming to reduce combined operating expenses by over 30% in the short term.

“Since we initiated our formal review of strategic alternatives in mid-November, we have received significant inbound interest that has led to ongoing discussions and due diligence with several parties. Through our discussions with Renovaro, we became increasingly compelled by the strategic potential of combining the Predictive’s AI-driven drug discovery platform and vast biobank of more than 150,000 patient tumor samples, 200,000 pathology slides and decades of longitudinal drug response data with Renovaro’s multi-disciplinary artificial intelligence, multi-omic and multi-modal data expertise,” – stated Raymond Vennare, Chairman and Chief Executive Officer of Predictive Oncology.

According to the binding letter of intent, Predictive Oncology will merge with Renovaro, with shareholders of Predictive Oncology receiving a newly created series of preferred stock from Renovaro in a 1:1 exchange for their existing common stock.

This preferred stock can be redeemed automatically for $3.00 per share after 18 months and may also be converted into freely tradable Renovaro common stock at a 1:1 ratio if Renovaro’s common stock trades at or above $4.50 per share for 30 consecutive days.

Renovaro retains the right to redeem the preferred stock for cash at $3.00 per share under certain conditions, such as if its common stock trades at $3.00 or less or if the preferred stock is not converted within 30 days of eligibility.

David Weinstein, CEO of Renovaro, stated:

“Since my arrival just two months ago, the management team has been executing on its 100-day plan of action and evaluating strategic opportunities for both of our verticals, RenovaroBio and RenovaroCube.

This transaction with Predictive Oncology furthers our quest to offer cancer patients early diagnosis, a personalized treatment protocols, and recurrence monitoring.”

Additionally, if holders of Predictive Oncology’s Series A and Series B warrants do not exercise their warrants by January 15, 2025, Renovaro has committed to purchasing up to 2.33 million shares of Predictive Oncology’s common stock at $1.07 per share.

The companies aim to finalize the merger documentation by February 28, 2025.

The merger is contingent upon Renovaro raising a minimum of $15 million and receiving formal approval from Predictive Oncology’s shareholders. If shareholder approval is not obtained after Renovaro’s funding, it will have a two-year exclusive royalty-free license to use Predictive Oncology’s biobank and tumor-specific 3D cell culture models.

“Over the coming weeks, we will work diligently to finalize the composition of our leadership team and Board of Directors, as well as details concerning the combined company’s R&D priorities and operations.

We are both fully committed to completing this transaction as soon as possible, and actualizing a new, best-in-class oncology-focused technology that promises patients a brighter future,” – Messrs. Weinstein and Vennare continued.

There can be no assurance that an agreement or transaction with Renovaro will be executed, or as to the timing of any such agreement or transaction. Predictive Oncology does not intend to discuss or disclose further developments regarding these discussions unless and until its Board of Directors has approved a transaction or otherwise determined that further disclosure is appropriate or required by law.

About Renovaro

Renovaro aims to accelerate precision and personalized medicine for longevity powered by mutually reinforcing AI and biotechnology platforms for early diagnosis, better-targeted treatments, and drug discovery.

Renovaro includes RenovaroBio, an advanced cell-gene immunotherapy company, and Renovaro Cube.

Renovaro Cube has developed an award-winning AI platform that is committed to the early detection of cancer and its recurrence and monitoring subsequent treatments. Renovaro Cube intervenes at a stage where potential therapy can be most effective. Renovaro Cube is a molecular data science company with a background in FinTech and a 12-year history.

It brings together proprietary artificial intelligence (AI) technology, multi-omics, multi-modal data, and the expertise of a carefully selected multidisciplinary team to radically accelerate precision medicine and enable breakthrough changes in disease agnostic decision support.

About Predictive Oncology

Predictive Oncology is on the cutting edge of the rapidly growing use of artificial intelligence and machine learning to expedite early biomarker and drug discovery and enable drug development for the benefit of cancer patients worldwide.

The company’s proprietary AI/ML platform has been scientifically validated 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 lab and GMP facilities. Predictive Oncology is headquartered in Pittsburgh, PA.