- 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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