Renovaro, Predictive Oncology soar after announcing merger plans

Axe Compute

06/01/2025 15:58

** Shares of biotech company Renovaro  RENB.O  up as much as
38.2% to $1.28 after announcing plans to acquire cancer therapy
developer Predictive Oncology  POAI.O  in an all-stock
transaction
    ** Shares of Predictive Oncology surged as much as 58% to
$1.90
    ** Both companies entered into a letter of intent for POAI
to merge into RENB in exchange for a newly created preferred
stock 
    ** Each preferred stock will be issued to POAI shareholders
for their existing share, according to the deal terms
    ** Deal also states that preferred stock is redeemable for
$3 per share after 18 months, or can be converted to Renovaro
common stock if RENB trades above $4.50 per share for 30
consecutive trading days
    ** Both companies agreed to enter into definitive
documentation for the merger by Feb. 28, 2025, with deal being
subject to the fundraising of $15 mln by Renovaro and formal
approval by POAI shareholders
    ** POAI had announced its intent to explore strategic
alternatives including a sale on Nov. 13
    ** RENB and POAI stock fell ~73% and 75%, respectively, last
year

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))