UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934
Filed by the Registrant | ☒ | |
Filed by a Party other than the Registrant | ☐ |
Check the appropriate box:
☒ | Preliminary Proxy Statement |
☐ | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
☐ | Definitive Proxy Statement |
☐ | Definitive Additional Materials |
☐ | Soliciting Material Pursuant to §240.14a-12 |
PREDICTIVE ONCOLOGY INC. |
(Name of Registrant as Specified in Its Charter) |
(Name of Person(s) Filing Proxy Statement, if other than the Registrant) |
Payment of Filing Fee (Check the appropriate box):
☒ | No fee required. |
☐ | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
(1) | Title of each class of securities to which transaction applies: |
(2) | Aggregate number of securities to which transaction applies: |
(3) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): |
(4) | Proposed maximum aggregate value of transaction: |
(5) | Total fee paid: |
☐ | Fee paid previously with preliminary materials. |
☐ | Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
(1) | Amount Previously Paid: |
(2) | Form, Schedule or Registration Statement No.: |
(3) | Filing Party: |
(4) | Date Filed: |
PREDICTIVE ONCOLOGY INC.
2915 Commers Drive, Suite 900
Eagan, Minnesota 55121
Telephone: (651) 389-4800
NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
To Be Held on August 10, 2021
Dear Stockholder:
You are cordially invited to attend the Special Meeting of Stockholders (the “Special Meeting”) of Predictive Oncology Inc. (the “Company”) on August 10, 2021,April 17, at 3:00 PM (Central Time)time) at the offices of the Company’s counsel, Maslon LLP, 3300 Wells Fargo Center, 90 South Seventh Street, Minneapolis, MN 55402 for the following purposes:
During the Special Meeting, if necessary, to solicit additional proxies for approval of the Charter Proposal, the Plan Proposal, the Equity Line Proposal and/or the Auditor Proposal, as applicable, in the event that there are not sufficient votes at the time of the Special Meeting to approve any such proposal.
1. | To approve an amendment of the Company’s certificate of incorporation to effect a reverse stock split of the outstanding shares of its common stock at a ratio of not less than one-for-two (1:2) and not more than one-for-twenty-five (1:25), with the exact ratio to be set at a whole number within this range as determined by our Board of Directors (the “Reverse Split Proposal”); and |
2. | To approve a proposal to adjourn the Special Meeting, if necessary, to solicit additional proxies for approval of the Reverse Split Proposal, in the event that there are not sufficient votes at the time of the Special Meeting to approve such proposal (the “Adjournment Proposal”). |
These items of business are more fully described in the proxy statement accompanying this Notice.
For key information to consider before you vote, please see “QUESTIONS AND ANSWERS ABOUT THESE PROXY MATERIALS AND VOTING” beginning on page 1 of this proxy statement.
The record date for the Special Meeting is June 16, 2021.March 28, 2023. Only stockholders of record at the close of business on that date are entitled to vote at the meeting or any adjournment thereof, or by proxy.
By Order of the Board of Directors, | |
Sincerely, | |
/s/ Raymond F. Vennare | |
Raymond F. Vennare | |
Chief Executive Officer |
Eagan, MinnesotaJuly 7, 2021
, 2023
You are cordially invited to attend the meeting in person. Whether or not you expect to attend the meeting, please vote your shares. You may submitvote your proxy over the Internet or, if you receive a paper proxy card by mail, by completing and returning the proxy card mailed to you. Voting instructions are provided on your proxy card or voting instruction card by completing, signing, dating and mailing your proxy card or voting instruction card in the envelope provided or vote by facsimile, email or over the Internet as instructedincluded in the proxy statement. Any stockholder attending the meeting may vote in person, even if you already returned a proxy card or voting instruction card and intend to changehave previously submitted your original vote. Please note, however, that if your shares are held of record by a broker, bank or other nominee and you wish to vote at the meeting, you must obtain a legal proxy issued in your name from that record holder.
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE
STOCKHOLDER MEETING TO BE HELD ON AUGUST 10, 2021:
The Proxy Statement is
available at https:http://investors.predictive-oncology.com
TABLE OF CONTENTS
1 | ||||||||
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | ||||||||
SPLIT | ||||||||
PREDICTIVE ONCOLOGY INC.
2915 Commers Drive, Suite 900
Eagan, Minnesota 55121
Telephone: (651) 389-4800
PROXY STATEMENT
FOR THE SPECIAL MEETING OF STOCKHOLDERS
TO BE HELD ON AUGUST 10, 2021
These proxy materials are being furnished in connection with the solicitation of proxies by the Board of Directors of Predictive Oncology Inc. (the “Board of Directors”) for use at the special meeting of stockholders (the “Special Meeting”) to be held on April 17, 2023 at 3:00 p.m. Central time, and at including any adjournments or postponements of the Special Meeting.
Except where the context otherwise requires, references to “Predictive Oncology,” “the Company,” “we,” “us,” “our” and similar terms refer to Predictive Oncology Inc. In addition, unless the context otherwise requires, references to “stockholders” are to the holders of our common stock, par value $0.01 per share (our “common stock”) and our Series F Preferred Stock, par value $0.01 per share (“Series F Preferred Stock”).
This proxy statement summarizes information about the proposals to be considered at the Special Meeting and other information you may find useful in determining how to vote. The proxy card is a means by which you actually authorize the proxies to vote your shares in accordance with your instructions.
QUESTIONS AND ANSWERS ABOUT THESETHIS PROXY MATERIALSMATERIAL AND VOTING
Who is soliciting my vote?
We are providing you with these materials?
We intend to mail this proxy statement and accompanying proxy card on or about July 7, 2021,March 30, 2023 to all stockholders of record entitled to vote at the Special Meeting.
Am I allowed to attend the Special Meeting in person?
Stockholders may attend the Special Meeting in person. Any stockholder who desires to attend in person is kindly asked to provide advance written notice to bmyers@predictive-oncology.com. If you would like directions to the offices of the Company’s counsel, Maslon LLP, please call please call (651) 389-4800.
What is the purpose of the Special Meeting?
At the Special Meeting, in personstockholders will be requiredasked to wear a mask, in light ofconsider and vote on the ongoing COVID-19 pandemic and vaccination efforts.
1. | A proposal to amend the Company’s certificate of incorporation to effect a reverse stock split of the outstanding shares of its common stock at a ratio of not less than one-for-two (1:2) and not more than one-for-twenty-five (1:25), with the exact ratio to be set at a whole number within this range as determined by our Board of Directors (the “Reverse Split Proposal”); and |
1 |
2. | A proposal to adjourn the Special Meeting, if necessary, to solicit additional proxies for approval of the Reverse Split Proposal, in the event that there are not sufficient votes at the time of the Special Meeting to approve such proposal (the “Adjournment Proposal”). |
Who can vote at the Special Meeting?
Only stockholders of record, including holders of our common stock and holders of our Series F Preferred Stock, at the close of business on June 16, 2021March 28, 2023, the record date for the Special Meeting, will be entitled to vote at the Special Meeting. OnNotwithstanding the record date, thereforegoing, holders of outstanding shares of Series F Preferred Stock will only be entitled to vote such shares on the Reverse Split Proposal and the Adjournment Proposal to the extent that such shares have not be automatically redeemed in the Initial Redemption (defined below). There were 65,339,695[●] shares of common stock, outstanding[●] shares of Series F Preferred Stock, and no shares of any other series of preferred stock entitled to vote.
Stockholder of Record: Shares Registered in Your Name
If, on June 16, 2021,the record date, your shares were registered directly in your name with the Company’s transfer agent, Equiniti,Pacific Stock Transfer, then you are a stockholder of record. As a stockholder of record, you may vote at the meetingSpecial Meeting or vote by proxy. Whether or not you plan to attend the meeting, we urge you to vote your shares electronically over the Internet or, vote by completing, signing, dating and mailing your proxy card in the envelope provided or vote by proxy via facsimile, email or on the Internet as instructed below to ensure your vote is counted.
Beneficial Owner: Shares Registered in the Name of a Broker or Bank
If, on June 16, 2021,the record date, your shares were held, not in your name, but rather in an account at a brokerage firm, bank, dealer, or other similar organization, then you are the beneficial owner of shares held in “street name” and these proxy materials are being forwarded to you by that organization. The organization holding your account is considered to be the stockholder of record for purposes of voting at the Special Meeting. As a beneficial owner, you have the right to direct your broker or other agent regarding how to vote the shares in your account. You are also invited to attend the Special Meeting. However, since you are not the stockholder of record, you may not vote your shares at the meeting unless you request and obtain a valid legal proxy from your broker or other agent.
Why did the Board decide to issue shares of Series F Preferred Stock?
Over the past several years, several large brokerage firms (particularly firms with heavily retail stockholders) have changed their voting on?
Why has the Board of Directors recommended that you vote “FOR” Proposal 1
As described in this proxy statement, we received a letter from The Nasdaq Stock Market LLC (“Nasdaq”), informing us that because the closing bid price for our common stock listed on Nasdaq was below $1.00 for 30 consecutive trading days, we do not comply with the minimum closing bid price requirement for continued listing on Nasdaq. We must regain compliance with the minimum closing bid price requirement no later than May 8, 2023. The Board considers it important for the Company to maintain its Nasdaq listing. Delisting could adversely affect the trading market for the common stock. Further, delisting would adversely affect the Company’s ability to access the capital markets or pursue acquisitions.
2 |
To approveprovide flexibility to enable the Company to prevent our stock from being delisted from Nasdaq Stock based on the minimum share price requirement, our Board has adopted a resolution declaring advisable, and recommending to our stockholders for their approval, an amendment to the Company’sour certificate of incorporation authorizing a reverse stock split of the outstanding shares of our common stock at a ratio in the range of 1-for-2 to 1-for-25, with such ratio to be determined by the Board and included in a public announcement (the “Reverse Stock Split”), and granting the Board the discretion to file a certificate of amendment to our certificate of incorporation with the Secretary of State of the State of Delaware effecting the Reverse Stock Split on or prior to September 30, 2023, or to abandon the Reverse Stock Split altogether. The primary goal of the Reverse Stock Split is to increase the per share market price of our common stock to meet the minimum per share bid price requirements for continued listing on Nasdaq.
The form of the proposed certificate of amendment to our certificate of incorporation is attached to this proxy statement as Appendix A. The certificate of amendment would effect the Reverse Stock Split by reducing the number of outstanding shares of common stock as compared to the number of outstanding shares immediately prior to the effectiveness of the Reverse Stock Split, but will not increase the par value of our common stock, and will not change the number of authorized shares of Common Stock from 100,000,000,our capital stock. Stockholders are urged to 200,000,000 (the “Charter Proposal”)carefully read Appendix A.
The Board believes that the Reverse Stock Split may be necessary to assure compliance with the Nasdaq’s minimum bid price requirement. There is no guarantee that the price of the Company’s common stock will be sufficient to meet the minimum bid price requirement, even if there are positive business developments in the near future that could result in an increase in the trading price of our common stock in the next few months.
The Company pursuantintends to a previously approved equity linemonitor the closing bid price of credit arrangement (the “Equity Line Proposal”).
For a more detailed discussion of the Charterwhy you should vote “FOR” Proposal the Plan Proposal, the Equity Line Proposal and/or the Auditor Proposal, as applicable, in the event that there are not sufficient votes at the time of the Special Meeting to approve any such proposal.
How do I vote?
For Proposals 1 2, 3, 4 and 5,2, you may vote “FOR” or “AGAINST” or abstain from voting.
Stockholder of Record: Shares Registered in Your Name
If you are a stockholder of record, you may vote at the Special Meeting, vote by proxy using the enclosed proxy card, vote by proxy via facsimile, email or on the Internet. Whether or not you plan to attend the meeting,Special Meeting, we urge you to vote by proxy to ensure your vote is counted. You may still attend the meetingSpecial Meeting and vote your shares even if you have already voted by proxy.
• | To vote online before the Special Meeting, go to www.annualgeneralmeetings.com/poaisp2023 and transmit your voting instructions up until 11:59 p.m. Eastern time on April 16, 2023. Be sure to have your proxy card available and follow the instructions given on the secure website. You will need the 12-digit control number that is printed on your proxy card to vote online. | |
• | To vote using a proxy card, simply complete, sign and date the proxy card and return it promptly in the envelope provided. If you return your signed proxy card to us before the Special Meeting, we will vote your shares as you direct. | |
To vote in person, come to the Special Meeting, and we will give you a ballot when you arrive. Any stockholder who desiresIf you would like directions to attend in person is kindly asked to provide advance written notice to bmyers@predictive-oncology.com. Please note that any stockholder who attends the Special Meeting in person will be required to wear a mask, in lightoffices of the ongoing COVID-19 pandemic and vaccination efforts.company’s counsel, Maslon LLP, please call (651) 389-4800.
3 |
Beneficial Owner: Shares Registered in the Name of Broker or Bank
If you are a beneficial owner of shares registered in the name of your broker, bank, or other agent, you should receive a proxy cardmaterials and voting instructions with these proxy materials from that organization rather than from us. Simply complete and mailfollow the proxy cardvoting instructions to ensure that your vote is submitted to your broker or bank. Alternatively, you may vote over the Internet as instructed by your broker or bank. To vote in real time at the Special Meeting, you must obtain a valid legal proxy from your broker, bank, or other agent. Follow the instructions from your broker or bank included with these proxy materials or contact your broker or bank to request a proxy form.
We provide Internet proxy voting to allow you to vote your shares online, with procedures designed to ensure the authenticity and correctness of your proxy vote instructions. However, please be aware that you must bear any costs associated with your Internet access, such as usage charges from Internet access providers and telephone companies.
How many votes do I have?
Pursuant to the rights of our stockholders contained in our charter documents, each mattershare of our common stock is entitled to be voted upon, you have one vote on all matters listed in this proxy statement. As previously announced on March 16, 2023, the Board of Directors declared a dividend of one one-thousandth (1/1,000th) of a share of Series F Preferred Stock for each outstanding share of common stock you ownto stockholders of record of common stock as of June 16, 2021.
All shares of Series F Preferred Stock that are not present in person or by proxy at the Special Meeting as of immediately prior to the opening of the polls at the Special Meeting will be automatically redeemed (the “Initial Redemption”). Any outstanding shares of Series F Preferred Stock that have not been redeemed pursuant to the Initial Redemption will be redeemed in whole, but not in part, (i) if and when ordered by our Board or (ii) automatically upon the approval by the Company’s stockholders of the Reverse Split Proposal at any meeting of the stock-holders held for the purpose of voting on such proposal.
What if I return a proxy card or otherwise vote but do not make specific choices?
If you return a signed and dated proxy card or otherwise vote without marking any voting selections, your shares will be voted “For” ProposalProposals 1 2, 3, 4 and 5.2.
4 |
If you are a stockholder of record and do not vote over the Internet or by completing your proxy card, by voting at the Special Meeting, your shares will not be voted.
Who is the Company’s proxy solicitor, and who is paying for this proxy solicitation?
The Company has retained Regan & Associates, Inc. (“Regan”), an independent proxy solicitation firm, to assist in soliciting proxies on our behalf. We have agreed to pay Regan a fee of $37,500,$50,000, plus out-of-pocket expenses, for these services. We bear all proxy solicitation costs. If stockholders need assistance with casting or changing their vote, they should contact our proxy solicitor Regan, at (212) 587-3005.
In addition, our directors and employees may also solicit proxies in person, by telephone, email or by other means of communication. Directors and employees will not be paid any additional compensation for soliciting proxies. We may also reimburse brokerage firms, banks and other agents for the cost of forwarding proxy materials to beneficial owners.
What does it mean if I receive more than one proxy card?
If you receive more than one proxy card, your shares are registered in more than one name or are registered in different accounts. Please complete, sign and returnfollow the voting instructions on each proxy card to ensure that all of your shares are voted.
Are proxy materials available on the Internet?
Proxy materials for the Special Meeting are available at https://investors.predictive-oncology.com.
Can I change my vote after submitting my proxy?
Yes. You can revoke your proxy at any time before the final vote at the Special Meeting. If you are the record holder of your shares, you may revoke your proxy in any one of three ways:
If your shares are held by your broker or bank as a nominee or agent, you should follow the instructions provided by your broker or bank.
What are “broker non-votes”?
Broker non-votes occur when shares are held indirectly through a broker, bank or other intermediary on behalf of a beneficial owner of shares(referred to as held in “street name”) and the broker submits a proxy but does not give instructions tovote for a matter because the broker has not received voting instructions from the beneficial owner and (i) the broker does not have discretionary voting authority on the matter or nominee holding(ii) the shares as to howbroker chooses not to vote on matters deemed “non-routine.” Generally, if shares are held in street name,a matter for which it has discretionary voting authority. Under the beneficial ownerrules of the shares is entitled to give voting instructions to the broker or nominee holding the shares. If the beneficial owner does not provide voting instructions, the broker or nominee can still vote the shares with respect to matters that are considered to be “routine,” but not with respect to “non-routine” matters. Proposals 4 and 5 are matters considered routine under the NYSE rules. All other proposals are matters considered non-routine by the New York Stock Exchange (the “NYSE”) that govern how brokers may vote shares for which they have not received voting instructions from the beneficial owner, brokers are permitted to exercise discretionary voting authority only on “routine” matters when voting instructions have not been timely received from a beneficial owner. Each of Proposals 1 and therefore, there may2 is considered a “routine matter.” Therefore, if you do not provide voting instructions to your broker regarding Proposals 1 and 2, your broker will be broker non-votespermitted to exercise discretionary voting authority to vote your shares on these proposals.Proposals 1 and 2.
5 |
How are votes counted and how many votes are needed to approve each proposal?
· | To be approved, Proposal 1 (Reverse Split Proposal), must receive a “For” vote from the holders of a majority of the voting power of all shares of common stock and Series F Preferred Stock entitled to vote either in person or by proxy – in other words, a “For” vote from the holders of a majority of the voting power of all outstanding shares of common stock and Series F Preferred Stock (net of treasury shares). If you “Abstain” from voting, it will have the same effect as an “Against” vote. Broker non-votes, if any, will also have the effect of an “Against” vote. |
· | For Proposal No. 2, voting on a proposal to adjourn the Special Meeting, if necessary, in order to solicit more proxies for approval of the Reverse Split Proposal, Proposal No. 2 must receive a “For” vote from the holders of a majority of the voting power of the shares of capital stock of the Company present in person or represented by proxy at the Special Meeting and entitled to vote on Proposal 2. If you “Abstain” from voting, it will have the same effect as an “Against” vote. Broker non-votes will not have any effect on approval of Proposal No. 2. |
Please refer to the discussion above under “Who can vote at the Special Meeting,” and “How many votes do I have?” for a description of the Series F Preferred Stock, which is entitled to be voted together with the common stock as a single class on the Reverse Split Proposal and the Adjournment Proposal. Shares of Series F Preferred Stock that are not present in person or by proxy —as of immediately prior to the opening of the polls will be automatically redeemed in other words,the Initial Redemption and, therefore, will not be outstanding or entitled to vote on either the Reverse Split Proposal or the Adjournment Proposal and will be excluded from the calculation as to whether such proposals pass at the Special Meeting. Due to the voting power of the shares of Series F Preferred Stock that are not redeemed pursuant to the Initial Redemption on the Reverse Split Proposal and the Adjournment Proposal, the holders of common stock that submit a “For”proxy to vote fromtheir shares at the Special Meeting or attend the Special Meeting will effectively have enhanced voting power on the two proposals over holders of common stock that are not represented in person or by proxy at the Special Meeting. This means that the Reverse Split Proposal and the Adjournment Proposal could each be approved by the affirmative vote of the holders of less than a majority of allthe outstanding shares of our common stock, because the holders of a majority of the voting power of the outstanding shares of common stock (net of treasury shares). If you “Abstain” from voting, itand Series F Preferred Stock will have approved the same effect as an “Against” vote. A broker non-vote will also have the same effect as an “Against” vote.
What is the quorum requirement?
A quorum of the Company’s stockholders is necessary to hold a valid meeting. A quorum will be present if stockholders holding at least a majorityone-third of the outstanding shares of capital stock are present at the virtual meeting or represented by proxy. On the record date, there were 65,339,695 shares of common stock outstanding and entitled to vote. Thus, the holders of 32,669,849 shares of common stock must be present at the virtual meeting or represented by proxy at the meeting to have a quorum.
Your shares will be counted towards the quorum only if you submit a valid proxy (or one is submitted on your behalf by your broker, bank or other nominee) or if you vote in real time at the meeting.Special Meeting. Abstentions and broker non-votes will be counted towards the quorum requirement. If there is no quorum, the holders of a majority of shares present at the meetingSpecial Meeting or represented by proxy or the chairman of the meeting, may adjourn the meetingSpecial Meeting to another date.
How can I find out the results of the voting at the Special Meeting?
Preliminary voting results will be announced at the Special Meeting. Final voting results will be published in a Current Report on Form 8-K, which we will file within four business days after the Special Meeting.
What happens if the Special Meeting is adjourned?
The Company is required to notify stockholders of any adjournments of more than 30 days or if a new record date is fixed for the adjourned meeting. Except as described above, notice is not required for an adjourned meeting if the time, place and means of remote communication for the adjourned meeting are announced at the meeting at which the adjournment occurs. Unless a new record date is fixed, your proxy will still be valid and may be voted at the adjourned meeting unless properly revoked. You will still be able to change or revoke your proxy until it is voted.
6 |
PROPOSAL NO. 1: APPROVAL OF AN AMENDMENT TO THE COMPANY’S CERTIFICATE OF INCORPORATION TO INCREASE THE NUMBER OF AUTHORIZED SHARES OF COMMONREVERSE STOCK FROM 100,000,000 TO 200,000,000
Our Board of Directors has approved a proposal (the “Reverse Split Proposal”) to amend our certificate of incorporation to effect a reverse stock split of the Company’s Certificate of Incorporation to increase the number of authorized shares of common stock, from 100,000,000,as described below (the “Reverse Stock Split”). The Reverse Split Proposal permits (but does not require) the Board of Directors to 200,000,000.effect a reverse stock split of the Company’s common stock by a ratio of not less than one-for-two (1:2) and not more than one-for-twenty-five (1:25), as described below. The form of certificate of amendment (the “Amendment”) to increaseeffect the Company’s authorized share capitalReverse Stock Split is attached as
Background and Reasons for the Reverse Stock Split
On May 13, 2022, the Company received a letter from the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) indicating that the bid price for the Company’s authorizedcommon stock had closed below $1.00 per share for 30 consecutive trading days, and that the Company was therefore not in compliance with the minimum bid price requirement for continued listing on The Nasdaq Capital Market under Nasdaq Marketplace Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). The notification had no immediate effect on the listing of the Company’s common stock.
In accordance with Nasdaq’s Marketplace Rule 5810(c)(3)(A), we had a period of 180 calendar days, or until November 9, 2022, to regain compliance with the Minimum Bid Price Requirement. However, the bid price of the Company’s common stock did not close at or above $1.00 per share for a minimum of 10 consecutive trading days, and therefore the Company did not regain compliance with the Minimum Bid Price Requirement by November 9, 2022. On November 10, 2022, Nasdaq notified the Company that while the Company had not regained compliance with the Minimum Bid Price Requirement, it was eligible for an additional 180-day grace period, or until May 8, 2023, to regain compliance. Nasdaq’s determination was based on the Company having met the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on The Nasdaq Capital Market, with the exception of the Minimum Bid Price Requirement, and on the Company’s written notice to Nasdaq of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary.
If at any time before May 8, 2023, the bid price of the Company’s common stock closes at or above $1.00 per share for a minimum of 10 consecutive trading days, Nasdaq will provide written notification that the Company has achieved compliance with the Minimum Bid Price Requirement. If this does not occur, however, the Staff will notify the Company that its securities will be delisted. In the event of such notification, the Company may appeal the Staff’s determination to delist its securities, but there can be no assurance the Staff would grant the Company’s request for continued listing.
The Board believes that the Reverse Stock Split may be necessary to assure compliance with the Minimum Bid Price Requirement. The Board considers it important for the Company to maintain its Nasdaq listing. Delisting could adversely affect the trading market for the Company’s common stock. Further, delisting would adversely affect the Company’s ability to access the capital markets or pursue acquisitions.
The Company intends to monitor the closing bid price of its common stock. If, based on the bid price of the Company’s common stock currently consistsclosing at or above $1.00 per share for a minimum of 100,000,000 shares10 consecutive trading days, the Company achieves compliance with the Minimum Bid Price Requirement prior to effecting the Reverse Stock Split, the Company does not intend to effect the Reverse Stock Split and, instead, plans to cancel the Special Meeting.
Other Potential Benefits of Reverse Stock Split
In addition to helping regain compliance with the Minimum Bid Price Requirement, we believe that the Reverse Stock Split will make our common stock more attractive to a broader range of institutional and other investors, as we have been advised that the current market price of our common stock may affect its acceptability to certain institutional investors, professional investors and other members of the investing public. Many brokerage houses and institutional investors have internal policies and practices that either prohibit them from investing in low-priced stocks or tend to discourage individual brokers from recommending low-priced stocks to their customers. In addition, some of those policies and practices may function to make the processing of trades in low-priced stocks economically unattractive to brokers. Moreover, because brokers’ commissions on low-priced stocks generally represent a higher percentage of the stock price than commissions on higher-priced stocks, the current average price per share of common stock parcan result in individual stockholders paying transaction costs representing a higher percentage of their total share value $0.01 perthan would be the case if the share and 20,000,000 shares of preferred stock, of which 2,300,000 shares have been designated Series B Convertible Preferredprice were substantially higher. We believe that the Reverse Stock of which 79,246 shares are outstanding.
7 |
Reducing the number of outstanding warrants, 247,076 shares of common stock are reserved for future grants under the Company’s Amended and Restated 2012 Stock Incentive Plan (the “2012 Plan”), 1,042,105 shares of our common stock are issuable uponthrough the exerciseReverse Stock Split is intended, absent other factors, to increase the per share market price of outstandingour common stock. However, other factors, such as our financial results, market conditions and the market perception of our business may adversely affect the market price of our common stock. As a result, there can be no assurance that the Reverse Stock Split, if completed, will result in the intended benefits described above, that the market price of our common stock options, upwill increase (proportionately to 325,000the reduction in the number of shares of our common stock are issuable uponafter the vestingReverse Stock Split or otherwise) following the Reverse Stock Split or that the market price of our common stock will not decrease in the future. Accordingly, the total market capitalization of our common stock after the Reverse Stock Split could be lower or higher than the total market capitalization before the Reverse Stock Split.
Reverse Stock Split Proposal
The Reverse Stock Split Proposal permits (but does not require) the Board of Directors to effect a reverse stock split of the Company’s common stock by a ratio of not less than one-for-two (1:2) and settlementnot more than one-for-twenty-five (1:25), with the exact ratio to be set at a whole number within this range as determined by the Board of restrictedDirectors in its sole discretion, in any case no later than September 30, 2023. We believe that enabling the Board of Directors to set the ratio within the stated range will provide us with the flexibility to implement the Reverse Stock Split in a manner designed to maximize the anticipated benefits for our stockholders. In determining a ratio, if any, the Board of Directors may consider, among other things, factors such as:
The Board of Directors reserves the right to elect to abandon the Reverse Stock Split, even after stockholder approval, including any or all proposed reverse stock split ratios, if it determines, in its sole discretion, that the Reverse Stock Split is no longer in our best interests and the best interests of our stockholders. The Company intends to monitor the closing bid price of its common stock. If, based on the bid price of the Company’s common stock closing at or above $1.00 per share for a minimum of 10 consecutive trading days, the Company achieves compliance with the Minimum Bid Price Requirement prior to effecting the Reverse Stock Split, the Company does not intend to effect the Reverse Stock Split and, instead, plans to cancel the Special Meeting.
Depending on the ratio for the Reverse Stock Split determined by the Board of Directors, no less than two and no more than twenty-five shares of existing common stock, as determined by the Board of Directors, will be combined into one share of common stock. The Amendment, if any, will include only the reverse stock split ratio determined by the Board of Directors to be in the best interests of our stockholders and all of the other proposed amendments at different ratios will be abandoned.
8 |
If the Reverse Stock Split is effected, the authorized common stock will not be changed from 200 million shares, even though the Reverse Stock Split will reduce the number of outstanding shares of common stock, and 12,641will likewise cause a reduction in the number of shares of common stock reserved for issuance under other arrangements. This leaves only 17,971,524outstanding stock options, warrants and convertible securities. Therefore, the Reverse Stock Split will effectively increase the amount of shares of common stock available for future issuances.
Procedure for Implementing the Reverse Stock Split
If stockholder approval is obtained to effect the Reverse Stock Split, the Board will have the authority to implement the Reverse Stock Split on or before September 30, 2023. However, the Board of Directors reserves the right to elect not to proceed with the Reverse Stock Split if, at any time prior to filing the amendment to the Certificate of Incorporation, the Board of Directors, in its sole discretion, determines that it is no longer in our best interests and the best interests of our stockholders to proceed with the Reverse Stock Split. The numberReverse Stock Split will become effective upon the filing of reserved sharesa certificate of amendment to the Certificate of Incorporation with the Secretary of State of the State of Delaware. The exact timing of the filing of the certificate of amendment that will effect the Reverse Stock Split will be determined by the Board of Directors based on its evaluation as to when such action will be the most advantageous to us and our stockholders.
Certain Risks and Potential Disadvantages Associated with a Reverse Stock Split
We cannot assure stockholders that the proposed Reverse Stock Split will sufficiently increase our stock price or be completed before Nasdaq commences delisting procedures. The effect of a Reverse Stock Split on our stock price cannot be predicted with any certainty, and the history of reverse stock splits for other companies, including those in the preceding paragraph doesour industry, is varied, particularly since some investors may view a reverse stock split negatively. It is possible that our stock price after a Reverse Stock Split will not include (1) approximately 16.7 million shares reserved under warrants issued in June 2021 that are not exercisable unless an increase in the Company’s authorized common stock to 200 million shares becomes effective, and (2) up to an additional 450,000 shares that would become issuable under restricted stock units that become payablesame proportion as the reduction in shares upon a sufficient increase in shares reserved under the 2012 Plan.
The proposed Reverse Stock Split may decrease the liquidity of capitalour common stock and securities that are convertible or exercisable into sharesresult in higher transaction costs. The liquidity of such capitalour common stock without further vote ofmay be negatively impacted by the stockholders, except as required under applicable law. Thereduced number of shares tooutstanding after the Reverse Stock Split, which would be issuedexacerbated if the stock price does not increase following the Reverse Stock Split. In addition, a Reverse Stock Split would increase the number of stockholders owning “odd lots” of fewer than 100 shares, trading in any particularwhich generally results in higher transaction costs. Accordingly, a Reverse Stock Split may not achieve the desired results of increasing marketability and liquidity as described above.
The implementation of a Reverse Stock Split would result in an effective increase in the price and other terms on which suchauthorized number of shares will be issued will be determined solely by the Company’s Board. Under the Company’s Certificate of Incorporation, its stockholders do not have preemptive rights with respect to The Company’s common stock or preferred stock. Thus, should the Company’s Board elect to issue additional shares, existing stockholders would notavailable for issuance, which could, under certain circumstances, have any preferential rights to purchase any shares. In addition, under the Company’s Certificate of Incorporation, the Company’s Board has the authority to approve the rights and preferences of classes or series of preferred stock without stockholder approval.
Stockholders should also keep in mind that the implementation of a Reverse Stock Split does not have an effect on the actual or intrinsic value of our business or a stockholder’s proportional ownership interest (subject to the treatment of fractional shares). However, should the overall value of our common stock decline after a Reverse Stock Split, then the actual or intrinsic value of shares held by stockholders will also proportionately decrease as a result of the overall decline in value.
9 |
Effect of the Reverse Stock Split on Holders of Outstanding Common Stock
Depending on the ratio for the Reverse Stock Split determined by the Board of Directors, a minimum of two and a maximum of twenty-five shares of existing common stock will be combined into one new share of common stock. Based on 79,403,893 shares of common stock issued and outstanding as of March 17, 2023, immediately following the Reverse Stock Split, the Company would be availablehave approximately 39,701,947 shares of common stock issued and outstanding (without giving effect to rounding for fractional shares) if the ratio for the Reverse Stock Split is one-for- two-twenty-five (1:2), and approximately 3,176,156 shares of common stock issued and outstanding (without giving effect to rounding for fractional shares) if the ratio for the Reverse Stock Split is one-for-twenty-five (1:25). Any other ratio selected within such range would result in a number of shares of common stock issued and outstanding (without giving effect to rounding for fractional shares) following the transaction between approximately 39,701,947 and 3,176,156 shares. Fractional shares will not be issued. Instead, we will issue a full share of post-Reverse Stock Split common stock to any stockholder who would have been entitled to receive a fractional share of common stock as a result of the Reverse Stock Split.
The actual number of shares issued after giving effect to the Reverse Stock Split, if implemented, will depend on the reverse stock split ratio that is ultimately determined by the Board of Directors.
The Reverse Stock Split will affect all holders of our common stock uniformly and will not affect any stockholder’s percentage ownership interest in us, except to the extent the Reverse Stock Split would result in fractional shares, as described above. In addition, the Reverse Stock Split will not affect any stockholder’s proportionate voting power, except to the extent the Reverse Stock Split would result in fractional shares, as described above.
The Reverse Stock Split may result in some stockholders owning “odd lots” of less than 100 shares of common stock. Odd lot shares may be more difficult to sell, and brokerage commissions and other costs of transactions in odd lots are generally somewhat higher than the costs of transactions in “round lots” of even multiples of 100 shares.
After the Reverse Stock Split is effective, our common stock will have new Committee on Uniform Securities Identification Procedures (CUSIP) numbers, which are numbers used to identify our equity securities, and stock certificates with the older CUSIP numbers will need to be exchanged for stock certificates with the new CUSIP numbers by following the procedures described below. After the Reverse Stock Split, we will continue to be subject to the periodic reporting and other requirements of the Securities Exchange Act of 1934, as amended. Assuming that the Company’s meets the Minimum Bid Price Requirement, we expect that our common stock will continue to be quoted on The Nasdaq Capital Market under the symbol “POAI.”
Beneficial Holders of Common Stock (i.e., stockholders who hold in street name)
Upon the implementation of the Reverse Stock Split, we intend to treat shares held by stockholders through a bank, broker, custodian or other nominee in the same manner as registered stockholders whose shares are registered in their names. Banks, brokers, custodians or other nominees will be instructed to effect the Reverse Stock Split for their beneficial holders holding our common stock in street name. However, these banks, brokers, custodians or other nominees may have different procedures than registered stockholders for processing the Reverse Stock Split. Stockholders who hold shares of our common stock with a bank, broker, custodian or other nominee and who have any questions in this regard are encouraged to contact their banks, brokers, custodians or other nominees.
Registered “Book-Entry” Holders of Common Stock (i.e., stockholders that are registered on the transfer agent’s books and records but do not hold stock certificates)
Certain of our registered holders of common stock may hold some or all of their shares electronically in book-entry form with the transfer agent. These stockholders do not have stock certificates evidencing their ownership of the common stock. They are, however, provided with a statement reflecting the number of shares registered in their accounts.
Stockholders who hold shares electronically in book-entry form with the transfer agent will not need to take action (the exchange will be automatic) to receive shares of post-Reverse Stock Split common stock.
10 |
Holders of Certificated Shares of Common Stock
Stockholders holding shares of our common stock in certificated form will be sent necessary instructions by our transfer agent after the effective time of the Reverse Stock Split indicating how a stockholder should surrender his, her or its certificate(s) representing shares of our common stock (the “Old Certificates”) to the transfer agent in exchange for certificates representing the appropriate number of whole shares of post-Reverse Stock Split common stock (the “New Certificates”). No New Certificates will be issued to a stockholder until such stockholder has surrendered all Old Certificates to our transfer agent in accordance with its instructions. No stockholder will be required to pay a transfer or other fee to exchange his, her or its Old Certificates. Stockholders will then receive a New Certificate(s) representing the number of whole shares of common stock that they are entitled as a result of the Reverse Stock Split. Until surrendered, we will deem outstanding Old Certificates held by stockholders to be cancelled and only to represent the number of whole shares of post-Reverse Stock Split common stock to which these stockholders are entitled. Any Old Certificates submitted for exchange, whether because of a sale, transfer or other disposition of stock, will automatically be exchanged for New Certificates. If an Old Certificate has a restrictive legend on the back of the Old Certificate(s), the New Certificate will be issued with the same restrictive legends that are on the back of the Old Certificate(s).
Stockholders should not destroy any stock certificate(s) and should not submit any stock certificate(s) until requested to do so.
Effect of the Reverse Stock Split on Employee Plans, Options, Restricted Stock Awards and Units, Warrants, and Convertible or Exchangeable Securities
Based upon the reverse stock split ratio determined by the Board of Directors, proportionate adjustments are generally required to be made to the per share exercise price and the number of shares issuable upon the exercise or conversion of all outstanding options, warrants, convertible or exchangeable securities entitling the holders to purchase, exchange for, or convert into, shares of common stock. This would result in approximately the same aggregate price being required to be paid under such options, warrants, convertible or exchangeable securities upon exercise, and approximately the same value of shares of common stock being delivered upon such exercise, exchange or conversion, immediately following the Reverse Stock Split as was the case immediately preceding the Reverse Stock Split. The number of shares deliverable upon settlement or vesting of restricted stock awards will be similarly adjusted. The number of shares reserved for issuance pursuant to these securities will be proportionately based upon the reverse stock split ratio determined by the Board of Directors.
Accounting Matters
This proposed amendment to our certification of incorporation will not affect the par value of our common stock per share. As a result, as of the time the Reverse Stock Split is approvedeffective, the stated capital attributable to common stock and adopted could have the effectadditional paid-in capital account on our balance sheet will not change due to the Reverse Stock Split. Reported per share net income or loss will be higher because there will be fewer shares of discouragingcommon stock outstanding.
Material Federal Income Tax Consequences of the Reverse Stock Split
The following is a general summary of the material U.S. federal income tax consequences of the Reverse Stock Split to holders of our common stock. This summary is for general information only, is not tax advice, and is not intended to constitute a complete description of all tax consequences relating to the Reverse Stock Split.
Unless otherwise specifically indicated herein, this summary addresses the tax consequences only to a beneficial owner of our common stock that is a U.S. holder. For purposes of this discussion, the term “U.S. holder” means a beneficial owner of our common stock, that is, for U.S. federal income tax purposes:
· | an individual who is a citizen or resident, as defined in Code Section 7701(b), of the United States; |
· | a corporation or partnership, or other entity treated as a corporation or partnership for U.S. federal income tax purposes, created or organized in or under the laws of the United States, or any state thereof, or the District of Columbia; |
11 |
· | an estate, the income of which is subject to U.S. federal income tax regardless of its source; or |
· | a trust if (1) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have the authority to control all substantial decisions of the trust or (2) it has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person. |
This summary does not address all of the tax consequences that may be relevant to any particular investor, including tax considerations that arise from rules of general application to all taxpayers or preventingto certain classes of taxpayers or that are generally assumed to be known by investors. This summary also does not address the tax consequences to (i) persons that may be subject to special tax treatment under U.S. federal income tax law, such as banks, insurance companies, thrift institutions, regulated investment companies, real estate investment trusts, tax-exempt organizations, U.S. expatriates, persons subject to the alternative minimum tax, traders in securities that elect to mark to market and dealers in securities or currencies, (ii) persons that hold our common stock as part of a hostile takeover. Further, the increased authorized capital stock may have the effect of permitting the Company’s current management, including the current The Company Board, to retain its position and place it in a better position to resist changes that stockholders may wish to make if they are dissatisfied with“straddle” or as part of a “hedging,” “conversion” or other integrated investment transaction for federal income tax purposes, or (iii) persons hold our common stock as other than “capital assets” within the conductmeaning of Section 1221 of the Company’s business. InCode. If a partnership (or other entity classified as a partnership for U.S. federal income tax purposes) is the beneficial owner of our common stock, the U.S. federal income tax treatment of a partner in the partnership will generally depend on the status of the partner and the activities of the partnership. Partnerships that hold our common stock, and partners in such partnerships, should consult their own tax advisors regarding the U.S. federal income tax consequences of the Reverse Stock Split.
The information in this summary is based on the provisions of the Internal Revenue Code of 1986, as amended, final and temporary U.S. Treasury regulations, administrative interpretations and practices of the Internal Revenue Service, including its practices and policies as endorsed in private letter rulings, which are not binding on the Internal Revenue Service except in the case of preferred stock, under certain circumstances, it may have the taxpayer to whom a private letter ruling is addressed, and existing judicial authority, all as in effect of delaying or preventing a change of controlas of the Company by increasingdate of this Information Statement. Future legislation, regulations, administrative interpretations, and court decisions could change current law or adversely affect existing interpretation of current law. Any change could apply retroactively. We have not obtained any rulings from the number of outstanding shares entitled to vote and by increasingInternal Revenue Service concerning the number of votes required to approve a change of controltax treatment of the Company.
PLEASE CONSULT YOUR OWN TAX ADVISOR REGARDING THE U.S. FEDERAL, STATE, LOCAL, AND FOREIGN INCOME AND OTHER TAX CONSEQUENCES OF THE REVERSE STOCK SPLIT IN YOUR PARTICULAR CIRCUMSTANCES UNDER THE INTERNAL REVENUE CODE AND THE LAWS OF ANY OTHER TAXING JURISDICTION.
The Reverse Stock Split should be treated as a recapitalization for U.S. federal income tax purposes. Therefore, a stockholder generally will not recognize gain or loss on the reverse stock split, except for a stockholder receiving an additional share of common stock in lieu of a fractional share (as described below). The aggregate tax basis of the post-split shares received will be equal to the aggregate tax basis of the pre-split shares exchanged therefor, excluding the basis of the fractional share, and the holding period of the post-split shares received will include the holding period of the pre-split shares exchanged.
No gain or loss will be recognized by us as a result of the Reverse Stock Split. A stockholder who receives one whole share of common stock in lieu of a fractional share generally may recognize gain in an amount not to exceed the excess of the fair market value of such share over the fair market value of the fractional share to which the stockholder was otherwise entitled. Our view regarding the tax consequences of the Reverse Stock Split is not binding on the Internal Revenue Service or the courts. Accordingly, each stockholder should not rely on the foregoing and should consult with his or her own tax advisor with respect to all of the potential tax consequences to him or her of the Reverse Stock Split.
12 |
Stockholder Vote Required
In order to be approved, Proposal 1 must receivebe approved by the holders of a “For” vote from the majority of voting power of all shares of common stock and Series F Preferred Stock entitled to vote either in person or by proxy — in other words, a “For” vote from a majority of all outstanding shares of common stock (net of treasury shares). An abstention and a broker non- vote will haveat the same effect as an “Against” vote.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT THE STOCKHOLDERS VOTE “FOR” THIS PROPOSAL TO APPROVE THE AMENDMENT TO THE COMPANY’SOUR CERTIFICATE OF INCORPORATION TO INCREASEEFFECT A REVERSE STOCK SPLIT OF THE COMPANY’S AUTHORIZED CAPITAL STOCK AS SET FORTH ABOVE.
13 |
PROPOSAL NO. 2: APPROVAL OF AMENDMENT TO AN AMENDED AND RESTATED 2012 STOCK INCENTIVE PLAN TO INCREASE THE SHARE RESERVE
Name and Position(1) | | | Number of Shares of Restricted Stock/RSUs | | | Number of Shares Underlying Options | | ||||||
J. Melville Engle, CEO | | | | | 450,000(2) | | | | | | 125,139 | | |
Bob Myers, CFO | | | | | 250,000(2) | | | | | | 47,478 | | |
Executive Group | | | | | 700,000(2) | | | | | | 172,617 | | |
Non-Executive Director Group | | | | | 0 | | | | | | 212,349 | | |
Non-Executive Officer Employee Group | | | | | 0 | | | | | | 657,139 | | |
| | | 2020 | | | 2019 | | ||||||
Audit Fees(1) | | | | $ | 306,235 | | | | | $ | 530,128 | | |
Audit-Related Fees(2) | | | | | 27,461 | | | | | | — | | |
Tax Fees(3) | | | | | 22,250 | | | | | | 34,719 | | |
All Other Fees(4) | | | | | 37,415 | | | | | | — | | |
| | | | $ | 393,361 | | | | | $ | 564,847 | | |
We are not sufficient votesasking you to constitute a quorum orvote to approve one or more adjournments of the proposal to effect the Charter Proposal (Proposal 1), the Plan Proposal (Proposal 2), the Equity Line Proposal (Proposal 3) and/or the Auditor Proposal (Proposal 4), such proposals could not be approved unless such meeting was adjournedSpecial Meeting to a later date or dates in orderif necessary or appropriate to permit further solicitation of proxies. In ordersolicit additional proxies if there are insufficient votes to allow proxies that have been received by usapprove the Reverse Split Proposal (Proposal 1) at the time of the Special Meeting or if we do not have a quorum.
If our stockholders approve this Proposal 2, we could adjourn the Special Meeting and any reconvened session of the Special Meeting and use the additional time to solicit additional proxies, including proxies from stockholders that have previously returned properly executed proxies voting against the approval of the Reverse Split Proposal. Among other things, approval of this Proposal 2 could mean that, even if we had received proxies representing a sufficient number of votes against the approval of the Reverse Split Proposal such that the Reverse Split Proposal would be defeated, we could adjourn the Special Meeting without a vote on the approval of the Reverse Split Proposal and seek to convince the holders of those shares to change their votes to votes in favor of the Reverse Split Proposal. Additionally, we may seek to adjourn the Special Meeting if a quorum is not present.
Our Board believes that it is in the best interest of the Company and our stockholders to be voted for adjournment, you are being askedable to consideradjourn the Special Meeting to a proposal to approve the adjournment of the meeting,later date or dates if necessary or appropriate including to permit further solicitation of proxies if necessary to obtain additional votes in favor of any or all of such proposals.
Stockholder Vote Required
In order to be approved, Proposal 52 must receivebe approved by the holders of a “For” vote from the majority of allthe voting power of the shares of capital stock of the Company (including the common stock and Series F Preferred Stock, voting as a single class) present in person or represented by proxy at the Special Meeting and entitled to vote on the matter, either in person or by proxy. An abstention will have the same effect as an “Against” vote. There will be no broker non-votes.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT THE STOCKHOLDERSYOU VOTE “FOR” THIS PROPOSAL TO ADJOURN THE SPECIAL MEETING, AS SET FORTH ABOVE.
14 |
SECURITY OWNERSHIP OF
The following table sets forth certain information with respect to the beneficial ownership of our common stock and Series F Preferred Stock as of June 16, 2021March 17, 2023 (except where otherwise indicated) for:
The number of shares owned, total shares beneficially owned, and the percentage of common stock beneficially owned below assumes 65,339,69579,403,893 shares of our common stock and 79,404 shares of Series F Preferred Stock outstanding on June 16, 2021.
Beneficial ownership is determined under SEC rules and includes sole or shared power to vote or dispose of shares of ourCompany common stock. The number and percentage of shares beneficially owned by a person or entity also include shares issuable upon the exercise of common stock subject to stock options or warrants that are currently exercisable or become exercisable within 60 days of June 16, 2021.March 17, 2023. However, these shares are not deemed to be outstanding for the purpose of computing the percentage of shares beneficially owned of any other person or entity. Except as indicated in footnotes to the table below or, where applicable, to the extent authority is shares by spouses under community property laws, the beneficial owners named in the table have, to our knowledge, sole voting and dispositive power with respect to all shares of common stock shown to be beneficially owned by them.
Unless otherwise indicated, the address for each stockholder listed is: 2915 Commers Drive, Suite 900, Eagan, Minnesota 55121.
Name of Beneficial Owner | | | Amount and Nature of Beneficial Ownership(1) | | | Percent of Class | | ||||||
Officers and Directors | | | | | | | | | | | | | |
J. Melville Engle(2) | | | | | 134,168 | | | | | | * | | |
Bob Myers(3) | | | | | 80,889 | | | | | | * | | |
Charles Nuzum(4) | | | | | 53,876 | | | | | | * | | |
Gregory St. Clair(5) | | | | | 38,208 | | | | | | * | | |
Dr. Daniel Handley(6) | | | | | 41,875 | | | | | | * | | |
Dr. Nancy Chung-Welch(7) | | | | | 49,934 | | | | | | * | | |
Dr. Christina Jenkins | | | | | 5,000 | | | | | | * | | |
All directors and executive officers as a group (7 persons) | | | | | 403,950 | | | | | | * | | |
Dr. Carl Schwartz(8) | | | | | 2,265,099 | | | | | | 3.47% | | |
Name of Beneficial Owner | Shares of Common Stock Beneficially Owned | Shares of Series F Preferred Stock (13) | Percentage of Common Stock | Percentage of Series F Preferred Stock (13) | ||||||||||||
Directors and executive officers | ||||||||||||||||
Raymond Vennare (2) | 142,438 | 142 | * | * | ||||||||||||
Bob Myers (3) | 118,690 | 71 | * | * | ||||||||||||
Pamela Bush, Ph.D., MBA (4) | 54,873 | 47 | * | * | ||||||||||||
Nancy Chung-Welch(5) | 270,116 | 229 | * | * | ||||||||||||
Daniel Handley (6) | 216,781 | 183 | * | * | ||||||||||||
Matthew J. Hawryluk, Ph.D (7) | 33,332 | 33 | * | * | ||||||||||||
Chuck Nuzum (8) | 619,981 | 579 | * | * | ||||||||||||
David S. Smith, JD (9) | 90,666 | 90 | * | * | ||||||||||||
Gregory St. Clair (10) | 246,834 | 220 | * | * | ||||||||||||
All directors and executive officers as a group (9 persons) (11) | 1,793,711 | 1,594 | 2.26 | % | 2.01 | % | ||||||||||
Other named executive officers | ||||||||||||||||
J. Melville Engle (12) | 541,832 | 416 | * | * | ||||||||||||
�� | ||||||||||||||||
Carl Schwartz | 2,265,099 | 2,265 | 2.85 | % | 2.85 | % |
15 |
* | Less than 1%. |
1. | Under Rule 13d-3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (1) voting power, which includes the power to vote, or to direct the voting of shares; and (2) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the number of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person’s actual ownership or voting power with respect to the number of shares of common stock actually outstanding. |
2 | Includes zero shares issuable upon exercise of options held by Mr. Vennare that are exercisable within 60 days of March 17, 2023. |
3 | Includes 47,425 shares issuable upon exercise of options held by Mr. Myers that are exercisable within 60 days of March 17, 2023. |
4 | Includes 7,500 shares issuable upon exercise of options held by Dr. Bush that are exercisable within 60 days of March 17, 2023. |
5. | Includes 40,277 shares issuable upon exercise of options held by Dr. Chung-Welch that are exercisable within 60 days of March 17, 2023. |
6. | Includes 32,846 shares issuable upon exercise of options held by Dr. Handley that are exercisable within 60 days of March 17, 2023. |
7. | Includes zero shares issuable upon exercise of options held by Dr. Hawryluk that are exercisable within 60 days of March 17, 2023 |
8. | Includes 40,277 shares issuable upon exercise of options held by Mr. Nuzum that are exercisable within 60 days of March 17, 2023. |
9. | Includes zero shares issuable upon exercise of options held by Mr. Smith that are exercisable within 60 days of March 17, 2023. |
10. | Includes 26,623 shares issuable upon exercise of options held by Mr. St. Claire that are exercisable within 60 days of March 17, 2023. |
11. | Includes 194,948 shares issuable upon exercise of options that are exercisable within 60 days of March 17, 2023. |
12. | Includes 173,404 shares issuable upon exercise of options held by Dr. Schwartz that are exercisable within 60 days of March 17, 2023. |
13. | All shares of Series F Preferred Stock that are not present in person or by proxy at the Special Meeting as of immediately prior to the opening of the polls at the Special Meeting will be automatically redeemed. The Series F Preferred Stock is entitled to be voted together with the Common Stock as a single class on the Reverse Split Proposal and the Adjournment Proposal. Please refer to the discussion in the “QUESTIONS AND ANSWERS ABOUT THIS PROXY MATERIAL AND VOTING” section of this proxy statement under “Who can vote at the Special Meeting?” and “How many votes do I have?” for a description of the Series F Preferred for a description of the voting power of the Series F Preferred Stock. |
16 |
OTHER MATTERS
As of the date of this proxy statement, the Board of Directors and management does not intend to present any other items of business at the Special Meeting other than the proposals described above.
By Order of the Board of Directors | ||||
/s/ Raymond F. Vennare | ||||
Raymond F. Vennare | ||||
Chief Executive Officer |
Eagan, Minnesota
, 2023
17 |
APPENDIX A
FORM OF CERTIFICATE OF AMENDMENT TO OUR CERTIFICATE OF INCORPORATION TO
EFFECT A REVERSE STOCK SPLIT
CERTIFICATE OF AMENDMENT
TO THE CERTIFICATE OF INCORPORATION
OF
PREDICTIVE ONCOLOGY INC.
(Aa Delaware Corporation)
Pursuant to Section 242 of the Delaware General Corporation Law, the undersigned, being the Chief Financial Officer of Predictive Oncology Inc., a corporation organized and existing under the laws of the State of Delaware (the “
RESOLVED
: Section4.6 On the effective date of this Certificate of Amendment, the Corporation will effect a reverse stock split (the “Reverse Stock Split”) of its outstanding Common Stock pursuant to which every ________ (___) issued and outstanding shares of the Corporation’s Common Stock, par value $0.01 (the “Old Common Stock”) shall be reclassified and converted into one (1) validly issued, fully paid and non-assessable share of Common Stock, par value $0.01 (the “New Common Stock”). Each certificate representing shares of Old Common Stock shall thereafter represent the number of shares of New Common Stock into which the shares of Old Common Stock represented by such certificate were reclassified and converted hereby. No fractional shares of the Corporation’s New Common Stock shall be issued as a result of the Reverse Stock Split. If the Reverse Stock Split would result in the issuance of any fractional share of New Common Stock, the Corporation shall issue one whole share in lieu of such fractional share. The Reverse Stock Split shall not change the total number of shares of stock that the Corporation shall have authority to issue is two hundred million (200,000,000) sharespursuant to Section 4.1 of common stock, having a par valuethis Certificate of one cent ($0.01) per share (“Common Stock”); and twenty million (20,000,000) shares of preferred stock, with a par value of one cent ($0.01) per share (“Preferred Stock”).
FURTHER RESOLVED
: That the effective date of this Certificate of Amendment shall beThe foregoing resolutionresolutions and this Certificate of Amendment were adopted by the Board of Directors of the Corporation pursuant to board resolutionresolutions approved as of June , 2021,___________, 2023, in accordance with Section 141 of the Delaware General Corporation Law, and of holders of a majority of the voting power of the outstanding shares of the Corporation’s voting stock at a meeting of stockholders held on August 10, 2021________________, 2023 in accordance with Section 242 of the Delaware General Corporation Law.
IN WITNESS WHEREOF
, the undersigned, being the Chief Financial Officer of this Corporation, has executed this Certificate of Amendment to the Corporation’s Certificate of Incorporation, as amended, as ofPREDICTIVE ONCOLOGY INC. | |||||
Bob Myers, Chief Financial Officer |