Predictive Oncology Inc. (NASDAQ: NASDAQ:POAI), a data-driven cancer research company, has initiated an at-the-market (ATM) equity offering program, as revealed in a recent SEC filing. The company entered into a sales agreement on May 3, 2024, with H.C. Wainwright & Co., LLC, who will serve as the sales agent for the program.
Under this agreement, Predictive Oncology aims to offer shares of its common stock totaling approximately $3.7 million. The sales will be conducted on an occasional basis, aligning with market conditions and the company's operational needs.
The offering is contingent on the effectiveness of a registration statement on Form S-3, filed with the SEC on the same day as the sales agreement, though the company has stated that there is no guarantee the registration statement will become effective.
The terms of the sales agreement allow Predictive Oncology to control the parameters of the share sales, including the number, timing, and minimum prices of the shares to be sold. H.C. Wainwright will execute the sales in accordance with its standard trading practices, and within the bounds of federal and state laws.
Wainwright's compensation for facilitating these transactions is set at 3% of the gross sales price of all shares sold. However, Predictive Oncology has clarified that there is no obligation to sell any shares and retains the ability to suspend the offering at its discretion.
The sales agreement also includes customary legal provisions, such as representations, warranties, indemnification obligations, and other standard clauses. Both parties have the right to terminate the agreement under specific conditions, including the occurrence of any event that has a material adverse effect on Predictive Oncology.
This strategic move by Predictive Oncology allows the company to potentially strengthen its balance sheet by periodically selling shares into the market. The ATM offering provides flexibility in financing the company's operations, as it continues to focus on utilizing artificial intelligence and data analytics in cancer treatment research.
The information for this article is based on a press release statement filed with the SEC.
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