Predictive Oncology Stock Hits 1-Month Low Amid Renovaro Legal Clash, But Retail Leans Bullish

Shares of Predictive Oncology Inc. (POAI) fell to their lowest level in a month on Thursday, drawing significant retail attention. Renovaro announced that its 2025 lawsuit to enforce a merger agreement with POAI will proceed on an expedited trial schedule.

Renovaro, a TechBio company specializing in diagnostics and genetically enhanced cancer therapies, said the Delaware Court of Chancery approved its motion to fast-track a lawsuit filed earlier this month. 

Predictive Oncology shares closed down 10.1% at $0.98 on Thursday, holding steady in after-hours trading.

The case stems from an alleged breach of a binding merger agreement signed on Jan. 1.

According to Renovaro’s complaint, the agreement required POAI to merge into Renovaro in exchange for a new class of preferred stock. 

Renovaro claims that Predictive Oncology violated exclusivity and good faith clauses by raising $545,000 in a public offering in February and attempting to terminate the agreement unilaterally in April.

The company now seeks specific performance, injunctive relief, and damages for the alleged breaches.

In its Form 10-Q filing dated May 14, Predictive Oncology said that while the two companies entered into a binding letter of intent for the merger on Jan. 1, and extended the agreement’s termination date to March 31, no definitive purchase agreement was signed by that date. 

Predictive Oncology’s board notified Renovaro on April 3 that merger discussions were discontinued and that the company has no further obligations under the letter of intent or extension agreement. 

The company dismissed Renovaro’s lawsuit as without merit and said it intends to “vigorously” contest the case.

The dispute unfolds as Predictive Oncology continues to promote its use of AI and machine learning in drug discovery, citing access to a biobank of over 150,000 live tumor samples. 

The company said its platform modeled tumor responses for 21 previously untested compounds.

On Stocktwits, retail sentiment was ‘bullish’ amid a 2,200% surge in 24-hour message volume.

One retail user said they held no position in POAI but were invested in Renovaro and hoped the merger would be completed. 

Another user suggested POAI could deliver unexpected gains, predicting the stock might rally suddenly.

The stock has risen 6.5% so far in 2025.

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