AI Drives Key Merger in the Cancer Treatment SpaceAI Drives Key Merger in the Cancer Treatment Space

Renovaro said it is acquiring Predictive Oncology, a company focused on artificial intelligence- driven drug discovery.

Under the terms of the binding letter of intent, Predictive Oncology will be merged into Renovaro in exchange for a newly created series of preferred stock of Renovaro. The preferred stock will be issued to shareholders of Predictive Oncology in a 1:1 exchange for their existing Predictive Oncology common stock.

The preferred stock is automatically redeemable for $3 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.

The two companies have tremendous synergies. Both have proprietary AI / ML platforms with complementary technical advantages that will be leveraged together to accelerate drug discovery and reduce the risk of drug development.

Beyond the scientific synergies, the firms said the merger presents an opportunity to recognize significant cost savings by reducing operating expenses by more than 30% on a combined basis in the near term.

“Since we initiated our formal review of strategic alternatives in mid-November, we have received significant inbound interest that has led to ongoing discussions and due diligence with several parties,” said Raymond Vennare, Chairman and CEO of Predictive Oncology. “Through our discussions with Renovaro, we became increasingly compelled by the strategic potential of combining the Predictive’s AI-driven drug discovery platform and vast biobank of more than 150,000 patient tumor samples, 200,000 pathology slides and decades of longitudinal drug response data with Renovaro’s multi-disciplinary artificial intelligence, multi-omic and multi-modal data expertise.”