Precision Therapeutics Signs Letter of Intent to Purchase Remainder of Helomics Corporation Shares

Precision Therapeutics (NASDAQ:AIPT) a company focused on applying artificial intelligence to personalized medicine and drug discovery, announced today that it has signed an LOI to acquire the remainder of the equity in Helomics Corporation® not currently owned by Precision Therapeutics. Under the terms of the agreement, a newly formed, wholly owned subsidiary of Precision Therapeutics will merge with and into Helomics Corporation, thereby increasing Precision’s equity stake in Helomics from 25% to 100%.

As quoted in the press release:

• Creates a more diverse and balanced portfolio by bringing Helomics’ existing client base under the Precision Therapeutics umbrella, driving revenue generation for 2018
• TumorGenesis operations, currently a subsidiary of Precision, would become integrated with Helomics, allowing it to leverage Helomics’ complementary offering in the precision oncology market and to benefit from operational synergies
• Helomics’ management team to remain in their respective leadership positions at Helomics and to manage Precision Therapeutics’ TumorGenesis operations

• All-stock transaction: All outstanding shares of Helomics stock will be converted into the right to receive a proportionate share of 7.5 million shares of newly issued Precision common stock (‘Merger Shares’) and all warrants of Helomics’ common stock will be converted into warrants to purchase shares of Precision common stock, using a conversion ratio based on the ratio of the number of Merger Shares to the number of outstanding Helomics common shares being converted in the merger. Precision Therapeutics will take on non-convertible debt owed by Helomics of $3.0 million.

Click here to read the full press release.