- POAI CEO exchanges $2.1 promissory note for shares of common stock
- Agreement enables Predictive Oncology to strengthen balance sheet, simplify capital structure at critical juncture in quest to commercialize highly valuable database
- POAI cancels outstanding debt of $2,115,000 in aggregate principal amount of 12% promissory note
Predictive Oncology Inc. (NASDAQ: POAI), a knowledge-driven company focused on applying artificial intelligence to personalized medicine and drug discovery, has entered into an agreement with its CEO to exchange a $2.1 million promissory note for newly issued equity (http://ibn.fm/lzYPh). The strategic move demonstrates the confidence CEO Dr. Carl Schwartz has in the growing company.
“This agreement enables the company to strengthen its balance sheet and simplify its capital structure at a critical juncture in our quest to commercialize our highly valuable database of cancer tumors for the advancement of predictive medicine,” Schwartz said in a news release. “At the same time, it reinforces my commitment and demonstrates my belief in our ability to emerge as a leader in the application of artificial intelligence to oncology therapies.”
According to the agreement, Schwartz will exchange the promissory note for shares of common stock, $0.01 par value of Predictive Oncology at market value. In addition, Schwartz agrees not to sell or otherwise transfer one-half of the shares for three months after the date of the exchange agreement and not to sell or otherwise transfer the remaining shares for six months after the date of the agreement. Negotiated between the POAI and Schwartz on an arms-length basis, the agreement was approved by the Audit Committee of the company’s board of directors in accordance with Nasdaq listing requirements.
POAI received the note from Schwartz, exchanging it for 1,533,481 shares of common stock, newly issued at an exchange rate of $1.43 per share, the closing price of POAI common stock on April 21, 2020, prior to the execution of the agreement. Upon receipt, Predictive Oncology cancelled outstanding debt of $2,115,000 in aggregate principal amount of its 12% promissory note; the note was due to Schwartz by September 2020.
Additional details regarding the agreement can be found at www.SEC.gov on the company’s Form 8-K filed with the Securities and Exchange Commission on April 22, 2020.
POAI is bringing precision medicine, or tailored medical treatment using the individual characteristics of each patient, to the treatment of cancer. Through the company’s Helomics division, the company leverages its unique, clinically validated patient derived (PDx) smart tumor profiling platform to provide oncologists with a road map to help individualize therapy. In addition, the company is leveraging artificial intelligence and its proprietary database of over 150,000 cancer cases tumors to build AI-driven models of tumor drug repose to improve outcomes for the patients of today and tomorrow.
For more information, visit the company’s website at www.Predictive-Oncology.com
NOTE TO INVESTORS: The latest news and updates relating to POAI are available in the company’s newsroom at http://ibn.fm/POAI
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