Predictive Oncology Inc. (NASDAQ: POAI) announced it has secured a $10 million standby equity purchase agreement (SEPA) with YA II PN, LTD, an investment fund managed by Yorkville Advisors Global, LP. The Pittsburgh-based company expects this partnership to provide flexible funding for advancing its AI-driven drug discovery, biomarker discovery, and drug repurposing initiatives while supporting business development opportunities with leading biopharmaceutical companies.
Flexible Funding Structure
Under the agreement terms, Predictive Oncology has the right to sell up to $10 million worth of company stock to Yorkville, while maintaining complete discretion over the timing and amount of all sales. The SEPA structure includes no warrants, derivatives, or other share classes, and imposes no minimum commitments, minimum use penalties, or restrictions on the company's operating activities.
The company is not obligated to utilize any portion of the $10 million available under the SEPA, providing maximum flexibility in capital deployment decisions. This arrangement allows Predictive Oncology to access funding as needed while maintaining operational independence.
AI Platform Capabilities
Predictive Oncology's scientifically validated AI platform, PEDAL, demonstrates 92% accuracy in predicting whether a tumor sample will respond to specific drug compounds. This capability enables more informed selection of drug-tumor type combinations for subsequent in-vitro testing, potentially accelerating the drug discovery process and improving success rates.
The company leverages a vast biobank containing more than 150,000 assay-capable heterogeneous human tumor samples, positioning it to offer one of the industry's broadest AI-based drug discovery solutions. This extensive biological resource, combined with the company's wholly owned CLIA laboratory facility, provides comprehensive support for academic and industry partners.
Strategic Focus on Cancer Treatment
Predictive Oncology positions itself at the forefront of the rapidly growing application of artificial intelligence and machine learning in early drug discovery. The company's mission centers on expediting drug development for the benefit of cancer patients worldwide, addressing critical unmet medical needs in oncology.
The funding from this equity agreement is expected to support the company's ongoing initiatives in drug discovery and repurposing, potentially accelerating the development of new cancer treatments. The partnership also aims to enhance business development opportunities with leading biopharmaceutical companies, leveraging Predictive Oncology's novel AI and machine learning capabilities.
Market Position
The company describes itself as a leader in AI-driven drug discovery, operating in the expanding intersection of artificial intelligence and pharmaceutical development. With headquarters in Pittsburgh, PA, Predictive Oncology combines advanced computational capabilities with extensive biological resources to support drug discovery efforts across the oncology landscape.
