Shares of Predictive Oncology Inc (NASDAQ:POAI) dropped 4.7% after the company disclosed a standby equity purchase agreement with a Yorkville Advisors Global-managed investment fund.
Under the agreement, Predictive Oncology has the option to sell up to $10 million in common stock to YA II PN, LTD, giving the company flexibility over the timing and amount of any potential sales.
The AI-focused drug discovery firm described the arrangement as “an efficient and flexible source of funding” meant to support its research into biomarkers, ongoing drug discovery projects, and collaborations with biopharma partners.
The terms of the agreement clarify that no warrants, derivatives, or alternative share classes are involved. Predictive Oncology is under no obligation to utilize the full amount, and the deal carries no penalties or minimum funding thresholds. Importantly, the company’s day-to-day operations remain unrestricted under the agreement.
Proceeds, if used, are expected to enhance the company’s machine learning and AI infrastructure, furthering its efforts in drug development and repositioning.