Predictive Oncology to Be Acquired by Renovaro: A Boon for Cancer Research
AInvestMonday, Jan 6, 2025 9:34 am ET
2min read
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In a strategic move aimed at accelerating cancer research and improving patient outcomes, Predictive Oncology Inc. (NASDAQ: POAI) has agreed to be acquired by Renovaro Inc. (NASDAQ: RENB) in an all-stock transaction. The merger, expected to close by the end of February 2025, will create a powerful foundation for delivering a global point-of-care solution for cancer, combining complementary AI-driven platforms and expertise.



Predictive Oncology, a leader in AI-driven drug discovery, brings to the table a vast biobank of more than 150,000 tumor specimens, 200,000 pathology slides, and decades of longitudinal drug response data. Its proprietary AI/ML platform has been scientifically validated to predict tumor-drug response with 92% accuracy, allowing for a more informed selection of drug/tumor type combinations for subsequent in-vitro testing. Renovaro, a pioneer in cancer diagnostics and therapeutics powered by artificial intelligence, offers multi-disciplinary AI, multi-omic, and multi-modal data expertise, as well as a liquid biopsy approach to early cancer detection and monitoring.

The combined company will leverage these complementary strengths to advance both cancer diagnostics and early drug discovery. By integrating Predictive Oncology's AI-driven multi-omic drug discovery platform with Renovaro's AI Cube multi-omic artificial intelligence, the merged entity will be well-positioned to offer a comprehensive, end-to-end solution for cancer patients, from diagnostics and early detection to personalized therapies, in silico modeling, and biomarker discovery.

The merger is expected to generate immediate scientific synergies by harnessing complementary AI/ML platforms to improve patient outcomes across multiple cancer indications. Additionally, the combined organization will recognize significant cost savings by reducing operating expenses by more than 30% on a combined basis in the near term. This will be achieved through infrastructure streamlining, improved speed to market, and expanded global reach.

Shareholders of both companies stand to benefit from the merger. Predictive Oncology shareholders will receive a newly created series of preferred stock of Renovaro in a 1:1 exchange for their existing common stock. The preferred stock is automatically redeemable for $3.00 per share after 18 months and may also be converted to freely tradeable, registered Renovaro common stock at a 1:1 conversion ratio by either the holders thereof or Renovaro at any time after Renovaro's common stock has traded at or above $4.50 per share for 30 consecutive trading days. Renovaro also has the right to redeem the preferred stock for cash at a redemption price of $3.00 per share if the trading price of its common stock is $3.00 or less or if the preferred stock has not been converted within 30 days after the first date on which the holder could request such conversion.

In conclusion, the acquisition of Predictive Oncology by Renovaro is a strategic move that will accelerate cancer research, improve patient outcomes, and create value for shareholders. By combining complementary AI-driven platforms and expertise, the merged entity will be well-positioned to deliver a global point-of-care solution for cancer, from diagnostics and early detection to personalized therapies and biomarker discovery.
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