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 December 1, 2020
Dear Stockholder:
You are cordially invited to attend the Special
Meeting of Stockholders (the “Special Meeting”) of Predictive Oncology Inc. (the “Company” or “Predictive”)
to be held virtually via live audio webcast at www.virtualshareholdermeeting.com/POAI2020SM on December 1, 2020, at 3:00 PM (Central
Standard Time). You will not be able to attend the Special Meeting in person.
During the Special Meeting, the Company’s
stockholders will be asked to:
|
1.
|
Approve the reincorporation of the Company in Nevada (the “Reincorporation”); and
|
|
2.
|
Approve a proposal to adjourn the Special Meeting, if necessary, to solicit additional proxies for approval of the Reincorporation.
|
These items of business are more fully described
in the proxy statement accompanying this Notice.
The record date for the Special Meeting is
October 28, 2020. 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/ Carl Schwartz
|
|
|
|
Carl Schwartz
|
|
Chief Executive Officer
|
Eagan, Minnesota
November 3, 2020
Your vote is important. Whether or not you expect to attend the
Special Meeting via live audio webcast, please submit 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 phone or over the Internet as instructed
in the proxy statement. 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. If you participate in and
vote your shares at the Special Meeting, your proxy will not be used.
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS
FOR THE
VIRTUAL STOCKHOLDER MEETING TO BE HELD ON DECEMBER 1, 2020:
The Proxy Statement is
available at https://investors.predictive-oncology.com/
TABLE OF CONTENTS
QUESTIONS AND ANSWERS ABOUT THIS PROXY MATERIAL AND VOTING
|
1
|
|
|
PROPOSAL NO. 1: APPROVAL OF REINCORPORATION IN NEVADA
|
6
|
|
|
PROPOSAL NO. 2: APPROVal of a proposal to adjourn the Special Meeting, if necessary, to solicit additional proxies for approval of Proposal No. 1
|
18
|
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
|
19
|
|
|
OTHER MATTERS
|
20
|
|
|
APPENDIX A: FORM OF MERGER AGREEMENT (AS IF PROPOSAL NO. 1 IS APPROVED)
|
A-1
|
|
|
APPENDIX B: FORM OF POST-REINCORPORATION the Articles of Incorporation (AS IF PROPOSAL NO. 1 IS APPROVED)
|
B-1
|
|
|
APPENDIX C: FORM OF POST-REINCORPORATION BYLAWS (AS IF PROPOSAL NO. 1 IS APPROVED)
|
C-1
|
|
|
|
|
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 VIRTUALLY ON DECEMBER 1, 2020
QUESTIONS AND ANSWERS ABOUT THIS PROXY MATERIAL AND VOTING
Why am I receiving these materials?
We have sent you this proxy statement and the
enclosed proxy card because the Board of Directors (the ”Board of Directors” or the “Board”) of Predictive
Oncology Inc., a Delaware corporation (the “Company”) is soliciting your proxy to vote at the Special Meeting of Stockholders
of the Company (the “Special Meeting”) to be held on December 1, 2020, at 3:00 PM (Central Standard Time), including
any adjournments or postponements of the Special Meeting. The Special Meeting will be a virtual meeting via live audio webcast
on the Internet. You do not need to attend the virtual meeting to vote your shares. Instead, you may simply complete, sign and
return the enclosed proxy card, or follow the instructions below to submit your proxy by facsimile, email or on the Internet.
The Company intends to mail this proxy statement
and accompanying proxy card on or about November 3, 2020, to all stockholders of record entitled to vote at the Special Meeting.
What am I voting on?
There are two matters scheduled for a vote:
|
1.
|
To approve the reincorporation of the Company in Nevada (the “Reincorporation”); and
|
|
2.
|
To approve a proposal to adjourn the Special Meeting, if necessary,
to solicit additional proxies for approval of the Reincorporation.
|
Why is the Company seeking approval for the Reincorporation?
The Board believes that there are several reasons
why a reincorporation in Nevada is in the best interests of the Company and our stockholders. First of all, the reincorporation
in Nevada will eliminate our obligation to pay the annual Delaware franchise tax, which we expect will result in substantial savings
to us over the long term. In addition, the Reincorporation may help us attract and retain qualified management by reducing the
risk of lawsuits being filed against the Company and its directors and officers. We believe that for the reasons described in this
proxy statement, in general, Nevada law provides greater protection to our directors, officers and the Company than Delaware law.
Also, reincorporation in Nevada will provide potentially greater protection for directors of the Company and, unlike Delaware,
for officers as well.
The Reincorporation, to be approved at the
Special Meeting, must receive a “For” vote from a majority of the outstanding shares of common stock of the Company.
The Company previously sought stockholder approval of the Reincorporation at its Annual Meeting held virtually on September 3,
2020. Although it received approval from the stockholders holding a majority of the shares that were voted at the Annual Meeting,
the Reincorporation did not receive approval from a majority of the outstanding shares. The Company has therefore elected to call
a special meeting as soon as possible to seek approval and solicit enough votes to pass the proposal for the Reincorporation.
Conduct of the Meeting – Virtual Only
The Special Meeting will be held virtually
on December 1, 2020 at 3:00 p.m. (Central Standard Time), via live audio webcast at www.virtualshareholdermeeting.com/POAI2020SM.
There will be no physical meeting location. To attend the Special Meeting, you will need the 16-digit control number that is printed
in the box marked by the arrow on your Notice of Internet Availability or proxy card. We recommend that you log in at least
fifteen minutes before the Special Meeting to ensure that you are logged in when the meeting starts. Information on how to vote
online at the Special Meeting is discussed below.
If you wish to submit a question, please do
so during the meeting by logging into the virtual platform at www.virtualshareholdermeeting.com/POAI2020SM and follow the instructions
within.
Questions pertinent to meeting matters will
be answered during the Special Meeting. The Special Meeting is not to be used as a forum to present personal matters, or general
economic, political or other views that are not directly related to the business of Predictive and the matters properly before
the Special Meeting, and therefore questions on such matters will not be answered.
If you encounter any difficulties accessing
the virtual meeting during the check-in or meeting time, please call the technical support number that will be posted on the Virtual
Shareholder Meeting log in page.
Why are we holding the Special Meeting virtually?
As part of our effort to maintain a safe and
healthy environment for our directors, members of management and stockholders who wish to attend the Special Meeting, and in light
of the COVID-19 global pandemic, the Board believes that hosting a virtual Special Meeting is in our best interest and the best
interest of our stockholders and enables increased stockholder attendance and participation during a time when many travel and
gathering restrictions are in place and may limit attendance at our Special Meeting. We believe that the virtual meeting format
will provide stockholders a similar level of transparency to the traditional in-person meeting format and we will take steps to
ensure such an experience. Our stockholders will be afforded the same opportunities to participate at the virtual meeting as they
would at an in-person special meeting of stockholders.
Who can vote at the Special Meeting?
Only stockholders of record at the close of
business on October 28, 2020, will be entitled to vote at the Special Meeting. On the record date, there were 17,550,084 shares
of common stock outstanding and entitled to vote.
Stockholder of Record: Shares Registered in Your Name
If, on October 28, 2020, your shares were registered
directly in your name with the Company’s transfer agent, Corporate Stock Transfer, Inc., then you are a stockholder of record.
As a stockholder of record, you may vote at the virtual meeting or vote by proxy. Whether or not you plan to attend the virtual
meeting, we urge you to vote your shares 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 October 28, 2020, 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 virtual meeting unless you request and obtain a valid legal proxy from your broker or other agent.
How do I vote?
For Proposal Nos. 1 and 2, you may vote “FOR”
or “AGAINST” or abstain from voting.
The procedures for voting are as follows:
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 virtual meeting, we urge you to vote by proxy to ensure your vote is counted. You may still
attend the virtual meeting and vote your shares even if you have already voted by proxy.
|
•
|
To vote using the proxy card, simply complete, sign and date the
enclosed 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 by phone, call 1-800-690-6903 and transmit your voting instructions up until
11:59 p.m. Eastern Time on November 30, 2020. Have your proxy card in hand when you call and then follow the instructions.
|
|
•
|
To vote online before the Special Meeting, go to www.proxyvote.com
and transmit your voting instructions up until 11:59 p.m. Eastern Time November 30, 2020. Have your proxy card in hand when you
access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.
|
|
•
|
To vote online during the Special Meeting, visit www.virtualshareholdermeeting.com/POAI2020SM, be sure to have your Notice of Internet Availability or proxy card available and follow the instructions given on the secure website. You will need the 16-digit control number that is printed in the box marked by the arrow on your Notice of Internet Availability or proxy card to vote online at the Special Meeting.
|
Internet Voting
We are providing 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.
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 card and voting instructions with these proxy materials
from that organization rather than from us. Simply complete and mail the proxy card 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.
How many votes do I have?
On each matter to be voted upon, you have one
vote for each share of common stock you own as of October 28, 2020.
What if I return a proxy card but do not make specific choices?
If you return a signed and dated proxy card
without marking any voting selections, your shares will be voted “For” Proposals 1 and 2.
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 $42,500, including out of pocket expenses. 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 return each proxy
card to ensure that all of your shares are voted.
Are proxy materials available on the Internet?
This proxy statement is 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:
|
•
|
You may send a written notice to the secretary of the Company before the Special Meeting stating that you would like to revoke your proxy.
|
|
•
|
If you have signed and returned a paper proxy card, you may sign a new proxy card bearing a later date and submit it as instructed above.
|
|
•
|
If you have voted by telephone or Internet, you may cast a new vote by telephone or over the Internet as instructed above.
|
|
•
|
You may attend the virtual Special Meeting and vote online by following the instructions posted at www.virtualshareholdermeeting.com/POAI2020SM. Simply attending the Special Meeting will not, by itself, revoke your proxy.
|
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.
How are votes counted?
Votes will be counted by the inspector of election
appointed for the meeting for each proposal separately. For Proposal No. 1, the inspector of election will count “FOR”,
“AGAINST”, abstentions and broker non-votes. For Proposal No. 2, the inspector of election will count “FOR”,
“AGAINST” and abstentions. Abstentions will not be counted towards the vote total for Proposal No. 1, but will be counted
towards the vote total for Proposal No. 2, and in the case of Proposal No. 2 will have the same effect as “Against”
votes. Broker non-votes have no effect and will not be counted towards the vote total for any proposal.
Is cumulative voting permitted for the election of directors?
No. You will not be permitted to cumulate your
votes for the election of directors. Under Delaware law, stockholders are not entitled to cumulative voting rights unless a corporation’s
certificate of incorporation explicitly authorizes such rights. The Company’s certificate of incorporation does not authorize
cumulative voting rights for stockholders.
What are “broker non-votes”?
Broker non-votes occur when a beneficial owner
of shares held in “street name” does not give instructions to the broker or nominee holding the shares as to how to
vote on matters deemed “non-routine.” Generally, if shares are held in street name, the beneficial owner 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. Proposal No. 1 is considered non-routine by the New York Stock Exchange,
and therefore, there may be broker non-votes on that proposal. Proposal No. 2 is considered routine under the NYSE rules.
How many votes are needed to approve each proposal?
|
—
|
For Proposal No. 1, approval of the Reincorporation, to be approved, Proposal No. 1 must receive a “For” vote from a majority of the outstanding shares of common stock of the Company. If you “Abstain” from voting, it will have no impact on the vote. Broker non-votes will not have any effect on approval of Proposal No. 1, because they are not entitled to vote on the matter.
|
|
|
|
|
—
|
For Proposal No. 2, approval of adjournment of the Special Meeting, to be approved, Proposal No. 2 must receive a “For” vote from majority of shares of capital stock of the Company present at the virtual meeting or represented by proxy and entitled to vote on Proposal No. 2. If you “Abstain” from voting, it will have the same effect as an “Against” vote. There will be no broker non-votes on Proposal No. 2.
|
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 majority of the outstanding shares
are present at the virtual meeting or represented by proxy. On the record date, there were 17,550,084 shares of common stock outstanding
and entitled to vote. Thus, the holders of 8,775,043 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 virtual 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 virtual meeting or represented by proxy, or the chairman of the meeting, may
adjourn the 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.
OVERVIEW OF PROPOSALS
This Proxy Statement contains two proposals
requiring stockholder action. Proposal No. 1 requests approval of the Reincorporation of the Company in Nevada. Proposal No. 2
requests approval to adjourn the Special Meeting, if necessary, to solicit additional proxies for approval of Proposal No. 1.
PROPOSAL NO. 1: REINCORPORATION OF THE COMPANY
IN NEVADA
Description of the Proposed Reincorporation in Nevada
We propose to change our state of incorporation
from Delaware to Nevada, which we refer herein to as the “Reincorporation.” The Reincorporation would be effected through
the merger (the “Merger”) of the Company into a newly formed Nevada corporation that is a wholly owned subsidiary of
the Company, which we refer to herein as the “Surviving Company,” pursuant to an Agreement and Plan of Merger (the
“Merger Agreement”). Upon completion of the Merger, the Surviving Company will be the surviving corporation and will
continue to operate our business under the name “Predictive Oncology Inc.”
Reincorporation in Nevada will not result in
a material change in our business, management, assets, liabilities or net worth. Reincorporation in Nevada will allow us to take
advantage of certain provisions of the corporate laws of Nevada.
Reasons for the Reincorporation in Nevada
The Board of Directors believes that there
are several reasons why a reincorporation in Nevada is in the best interests of the Company and our stockholders. First of all,
the Reincorporation will eliminate our obligation to pay the annual Delaware franchise tax, which we expect will result in substantial
savings to us over the long term. For tax year 2019, we paid $169,741 in Delaware franchise taxes. If we reincorporate in
Nevada, our current annual fees will consist of an annual business license fee of $500, an annual domestic agent representation
fee of $125, and an annual tax based on the number of authorized shares, currently equal to $11,125.
In addition, the Reincorporation may help us
attract and retain qualified management by reducing the risk of lawsuits being filed against the Company and its directors and
officers. We believe that for the reasons described below, in general, Nevada law provides greater protection to our directors,
officers and the Company than Delaware law. The increasing frequency of claims and litigation directed towards directors and officers
has greatly expanded the risks facing directors and officers in general of public companies in exercising their duties. The amount
of time and money required to respond to these claims and to defend this type of litigation can be substantial. Delaware law provides
that every person becoming a director of a Delaware corporation consents to the personal jurisdiction of the Delaware courts in
connection with any action concerning the corporation. Accordingly, a director can be personally sued in Delaware, even though
the director has no other contacts with the state. Similarly, Nevada law provides that every person who accepts election or appointment,
including reelection or reappointment, as a director or officer of a Nevada corporation consents to the personal jurisdiction of
the Nevada courts in connection with all civil actions or proceedings brought in Nevada by, on behalf of or against the entity
in which the director or officer is a necessary or proper party, or in any action or proceeding against the director or officer
for a violation of a duty in such capacity, whether or not the person continues to serve as a director or officer at the time the
action or proceeding is commenced. We believe that the advantage of Nevada is that, unlike Delaware corporate law, much of which
consists of judicial decisions that migrate and develop over time, Nevada has pursued a statute-focused approach that does not
depend upon constant judicial supplementation and revision, and is intended to be stable, predictable and more efficient.
Also, reincorporation in Nevada will provide
potentially greater protection for directors of the Company and, unlike Delaware, for officers as well. Delaware law permits a
corporation to adopt provisions limiting or eliminating the liability of a director to a company and its stockholders for monetary
damages for breach of fiduciary duty as a director, provided that the liability does not arise from certain proscribed conduct,
including breach of the duty of loyalty, acts or omissions not in good faith or which involve intentional misconduct or a knowing
violation of law. By contrast, Nevada law permits a broader exclusion of liability of both officers and directors to the Company
and its stockholders, providing for an exclusion of all monetary damages for breach of fiduciary duty unless they arise from acts
or omissions which involve intentional misconduct, fraud or a knowing violation of law. The reincorporation will result in the
elimination of any liability of an officer or director for a breach of the duty of loyalty unless arising from intentional misconduct,
fraud or a knowing violation of law. There is currently no known pending claim or litigation against any of our directors or officers
for breach of fiduciary duty related to their service as directors or officers of the Company. The directors have an interest in
the Reincorporation to the extent that they will be entitled to such limitation of liability.
The Reincorporation is not being effected to
prevent a change in control, nor is it in response to any present attempt known to our Board to acquire control of the Company
or obtain representation on our Board. Nevertheless, certain effects of the proposed reincorporation may be considered to have
anti-takeover implications by virtue of being subject to Nevada law. For a discussion of differences between the laws of Delaware
and Nevada, including differences that may have anti-takeover implications, please see “Comparative Rights of Stockholders
under Delaware and Nevada Law” below.
Material Terms of the Merger
In order to effect the Reincorporation of the
Company in Nevada, the Company will be merged with and into the Surviving Company. Prior to the Merger, the Surviving Company will
not have engaged in any activities except in connection with the proposed transaction. The mailing address and telephone number
of the Surviving Company and its telephone number are the same as those of the Company. As part of its approval and recommendations
of our reincorporation in Nevada, the Board of Directors has approved, and recommends to our stockholders for their adoption and
approval, the Merger Agreement pursuant to which we will be merged with and into the Surviving Company. The full texts of the Merger
Agreement, the Articles of Incorporation and the Bylaws of the Surviving Company in substantially the form under which the Company’s
business will be conducted after the Merger are attached hereto as Appendix A, Appendix B, and Appendix
C, respectively. The discussion contained in this information statement is qualified in its entirety by reference to such Appendices.
The Board of Directors has determined that
the Reincorporation and the terms of the Merger Agreement between the Company and Surviving Company are in the best interests of
our stockholders. The terms of the Merger Agreement are more fully described below.
Terms of the Merger Agreement
The following discussion summarizes the material
terms of the Merger Agreement but does not purport to be a complete statement of all provisions of the Merger Agreement and is
qualified in its entirety by reference to the Merger Agreement, a copy of which is attached to this information statement as Appendix
A. Stockholders are urged to read the Merger Agreement carefully as it is the legal document that will govern the Merger.
The Merger. The Merger Agreement will
provide that, subject to the terms and conditions of the Merger Agreement, the Company shall be merged with and into the Surviving
Company, the Company’s separate legal existence shall cease and the Surviving Company shall continue as the surviving corporation.
Effect of the Merger. Upon the effectiveness
of the Reincorporation, each outstanding share of common stock of the Company will automatically be converted into shares of the
common stock of the Surviving Company, on a one-for-one-basis. Outstanding options and warrants to purchase the Company’s
common stock will be converted into options and warrants to purchase the same number of shares of the Surviving Company’s
common stock. Outstanding convertible securities and convertible debt that are convertible into the Company’s common stock
will be converted into convertible securities and convertible debt that are convertible into the same number of shares of the Surviving
Company’s common stock. The holders of outstanding shares of the Company’s Series B Convertible Preferred Stock would
receive cash equal to the fair market value of the Company common stock into which such shares are convertible. The Surviving Company,
as the surviving corporation, shall continue unaffected and unimpaired by the Merger with all of its purposes and powers. The Surviving
Company shall be governed by Nevada law and succeed to all rights, assets, liabilities and obligations of the Company in accordance
with Nevada law and Delaware law.
Certificate of Incorporation and Bylaws
of the Delaware Company Following the Merger. The Merger Agreement will provide that the Articles of Incorporation and the
Bylaws of the Surviving Company, as in effect at the Effective Time (as defined below) will be the Articles of Incorporation and
Bylaws, respectively, of the surviving corporation following the Merger. They are attached to this Proxy Statement as Appendix
B and Appendix C, respectively.
Directors and Officers of the Delaware Company
Following the Merger. The incumbent officers and directors of the Company will also be the officers and directors of the Surviving
Company at the Effective Time.
Effective Time
It is anticipated that the Merger, and consequently
our reincorporation from Delaware to Nevada, will become effective at the date and time (the “Effective Time”) specified
in each of (i) the Articles of Merger to be executed and filed with the office of the Nevada Secretary of State in accordance with
the Nevada Revised Statutes (“NRS”) Section 92A.200 and (ii) the Certificate of Merger to be executed and filed with
the Office of the Secretary of State of Delaware in accordance with Section 252 of the Delaware General Corporation Law (“DGCL”).
Material U.S. Federal Income Tax Consequences of the Reincorporation
We intend the Merger to be a tax-free reorganization
under the Internal Revenue Code of 1986, as amended. Assuming the Merger qualifies as a tax-free reorganization, the holders of
our common stock will not recognize any gain or loss under the U.S. federal income tax laws as a result of the consummation of
the Reincorporation, and neither will the Company nor the Surviving Company. Each stockholder will have the same basis in Surviving
Company common stock received as a result of the Reincorporation as that holder has in our common stock held at the time the Merger
is consummated. Each holder’s holding period in Surviving Company common stock received as a result of the Merger will include
the period during which such holder held our common stock at the time the Merger is consummated, provided the latter was held by
such holder as a capital asset at the time of consummation of the Merger.
This Proxy Statement only discusses U.S. federal
income tax consequences and has done so only for general information. It does not address all of the U.S. federal income tax consequences
that may be relevant to particular stockholders based upon individual circumstances or to stockholders who are subject to special
rules, such as financial institutions, tax-exempt organizations, insurance companies, dealers in securities, foreign holders or
holders who acquired their shares as compensation, whether through employee stock options or otherwise. This Proxy Statement does
not address the tax consequences under state, local or foreign laws.
This discussion is based on the Internal Revenue
Code, laws, regulations, rulings and decisions in effect as of the date of this Proxy Statement, all of which are subject to differing
interpretations and change, possibly with retroactive effect. The Company has neither requested nor received a tax opinion from
legal counsel or rulings from the Internal Revenue Service regarding the consequences of reincorporation. There can be no assurance
that future legislation, regulations, administrative rulings or court decisions would not alter the consequences discussed above.
You should consult your own tax advisor to
determine the particular tax consequences to you of the Reincorporation, including the applicability and effect of U.S. federal,
state, local, foreign and other tax laws.
Securities Act Consequences
The shares of Surviving Company common stock
to be issued in exchange for shares of our common stock are not being registered under the Securities Act of 1933, as amended (the
“Securities Act”). In that respect, the Surviving Company is relying on Rule 145(a)(2) under the Securities Act, which
provides that a merger that has as its sole purpose a change in a corporation’s domicile does not involve the sale of securities
for purposes of the Securities Act. After the Merger, the Surviving Company will be a publicly held company, and it will file with
the SEC and provide to its stockholders the same type of information that we have previously filed and provided. Stockholders,
whose shares of our common stock are freely tradable before the Merger, will continue to have freely tradable shares of Surviving
Company common stock. Stockholders holding restricted shares of Surviving Company common stock will be subject to the same restrictions
on transfer as those to which their present shares of our common stock are subject. In summary, the Surviving Company and its stockholders
will be in the same respective positions under the federal securities laws after the Reincorporation as the Company and our stockholders
prior to the Reincorporation.
No Exchange of Stock Certificates Required
Stockholders are not required to exchange their
stock certificates for new certificates representing shares of the Surviving Company common stock. New stock certificates representing
shares of Surviving Company common stock will not be issued to a stockholder until such stockholder submits one or more existing
certificates for transfer, whether pursuant to sale or other disposition. However, stockholders (at their option and at their expense)
may exchange their stock certificates for new certificates representing shares of Surviving Company common stock following the
effective time of the Merger.
Accounting Treatment of the Merger
In accordance with the terms of the Merger
Agreement, the Company will be merged with and into the Surviving Company, with the Surviving Company being the surviving corporation;
accordingly, the Merger is not expected to be accounted for as a business combination and as a result no goodwill is expected to
be recorded. The incumbent officers and directors of the Company will also be the officers and directors of the Surviving Company
at the Effective Time. Since the Merger is not expected to be accounted for as a business combination, no goodwill is expected
to be recorded in connection therewith and the costs incurred in connection with the Merger are expected to be expensed.
No Appraisal Rights
Appraisal rights are statutory rights that,
if applicable under law, enable stockholders to dissent from an extraordinary transaction, such as a merger, and to demand that
the corporation pay the fair value for their shares as determined by a court in a judicial proceeding instead of receiving the
consideration offered to stockholders in connection with the extraordinary transaction. Appraisal rights are not available in all
circumstances, and exceptions to these rights are provided under the DGCL.
Section 262 of the DGCL provides that stockholders
have the right, in some circumstances, to dissent from certain corporate actions and to instead demand payment of the fair value
of their shares. Stockholders do not have appraisal rights with respect to shares of any class or series of stock if, at the record
date for the meeting held to approve such transaction, such shares of stock, or depositary receipts in respect thereof, are either
(i) listed on a national securities exchange or (ii) held of record by more than 2,000 holders, unless the stockholders receive
in exchange for their shares anything other than shares of stock of the surviving or resulting corporation (or depositary receipts
in respect thereof), or of any other corporation that is listed on a national securities exchange or held by more than 2,000 holders
of record, cash in lieu of fractional shares or fractional depositary receipts described above or any combination of the foregoing.
In addition, neither the Company’s current Charter nor its current Bylaws contain any additional provisions relating to dissenters’
rights of appraisal. Therefore, because our common stock is listed on The NASDAQ Capital Market, and holders of our common stock
will receive in the Reincorporation only shares of the Surviving Company’s common stock, which will be listed on The NASDAQ
Capital Market, holders of our common stock will not be entitled to appraisal rights in the Reincorporation with respect to their
shares of our common stock.
Potential Disadvantages of the Reincorporation
Because of Delaware’s prominence as a
state of incorporation for many large corporations, the Delaware courts have developed considerable expertise in dealing with corporate
issues and a substantial body of case law has developed construing Delaware law and establishing public policies with respect to
Delaware corporations. While Nevada also has encouraged incorporation in that state and adopted comprehensive, modern and flexible
statutes that it periodically updates and revises to meet changing business needs, because Nevada case law concerning the effects
of its statutes and regulations is more limited, the Company and its stockholders may experience less predictability with respect
to the legality of certain corporate affairs and transactions and stockholders’ rights to challenge them, to the extent Nevada’s
statutes do not provide a clear answer and a Nevada court must make a determination.
In addition, underwriters and other members
of the financial services industry may be less willing and able to assist the Company with capital-raising programs because they
might perceive Nevada’s laws as being less flexible or developed than Delaware’s. Certain investment funds, sophisticated
investors and brokerage firms may likewise be less comfortable and less willing to invest in a corporation incorporated in a jurisdiction
other than Delaware whose corporate laws may be less understood or perceived to be unresponsive to stockholder rights.
Comparative Rights of Stockholders Before and After the Reincorporation
Upon consummation of the Reincorporation, the
outstanding shares of our common stock will be converted into shares of the Surviving Company’s common stock. The holders
of outstanding shares of the Company’s Series B Convertible Preferred Stock would receive cash equal to the fair market value
of the Company common stock into which such shares are convertible. Consequently, our common stockholders, whose rights as stockholders
are currently governed by the DGCL and the Company’s current Certificate of Incorporation and Bylaws, will become common
stockholders of the Surviving Company (as the surviving corporation) whose rights will be governed by the NRS and the Articles
of Incorporation and the Bylaws of the Surviving Company, which are attached hereto as Appendix B and Appendix
C, respectively. The Company’s current Certificate of Incorporation and Bylaws are referred to below as the “Current
Charter” and “Current Bylaws”, respectively, and the Surviving Company’s Articles of Incorporation and
Bylaws are referred to below as the “New Charter” and the “New Bylaws”, respectively.
Key Changes in the Company’s Charter and Bylaws to be Implemented by the Reincorporation
The New Charter and New Bylaws differ in a
number of respects from the Current Charter and Current Bylaws, respectively, copies of which have been filed with the SEC (including
as exhibits to the Company’s Annual Report on Form 10-K filed April 1, 2020) and are also available for inspection by our
stockholders upon reasonable notice during regular business hours, at our principal executive offices at 2915 Commers Drive, Suite
900, Eagan, Minnesota 55121, Attention: Corporate Secretary.
There are certain differences that may affect
your rights as a stockholder, as well as the corporate governance of the Surviving Company as the surviving corporation. The following
are summaries of some of the more significant differences between the Current Charter and Current Bylaws, on the one hand, and
the New Charter and New Bylaws, on the other. Except as described in this section, the rights of stockholders under
the New Charter and New Bylaws are substantially the same as under the Current Charter and Current Bylaws.
The following discussion is a brief summary.
It does not provide a complete description of the differences that may affect you. This summary is qualified in its entirety by
reference to the Current Charter and Current Bylaws, and the New Charter and New Bylaws.
Provisions
|
|
Nevada
|
|
Delaware
|
Charter regarding limitation on liability
|
|
The New Charter provides that, to the fullest extent permitted by
the NRS, the liability of directors and officers of the Surviving Company shall be eliminated or limited. Note that, under the
NRS, this provision does not exclude exculpation for breaches of duty of loyalty and covers both directors and officers.
|
|
The Current Charter provides that, to the fullest extent permitted by the DGCL, a director of the Company shall not be liable to the Company or its stockholders for monetary damages for breach of fiduciary duty as a director. Note that, under the DGCL, exculpation is not available for breaches of duty of loyalty and only covers directors.
|
Charter regarding distributions to stockholders
|
|
The New Charter provides that, in accordance with the NRS, the Surviving
Company may make distributions to stockholders even when, after giving effect to the distribution, the Surviving Company’s
total assets would be less than the sum of its total liabilities plus the amount that would be needed, if the Surviving Company
were to be dissolved at the time of distribution, to satisfy the preferential rights upon dissolution of stockholders whose preferential
rights are superior to those receiving the distribution.
|
|
Under the DGCL, a surplus is required to declare a dividend.
|
Bylaws regarding proxies
|
|
The New Bylaws provide that each proxy authorized by a stockholder shall be valid until its expiration or revocation in a manner permitted by the laws of Nevada. In Nevada proxies are valid for six months from the date of creation unless the proxy provides for a longer period of up to seven years.
|
|
The Current Bylaws provide that no proxy authorized by a stockholder shall be valid after three years from the date of its execution unless the proxy provides for a longer period.
|
Bylaws regarding removal of directors
|
|
As permitted by Nevada law, the New Bylaws provide that any director may be removed from office at any special meeting of the stockholders either with or without cause by the vote of the holders of not less than two-thirds of the voting power of the issued and outstanding stock entitled to vote generally in the election of directors, excluding stock entitled to vote only upon the happening of a fact or event unless such fact or event shall have occurred.
|
|
Under the Current Bylaws no director may be removed from office
by the stockholders except for cause with the affirmative vote of the holders of not less than a majority of the total voting power
of all outstanding securities of the Company then entitled to vote generally in the election of directors, voting together as a
single class.
|
Bylaws regarding director compensation
|
|
As permitted by Nevada law, the New Bylaws provide that director compensation established pursuant to the bylaws shall be presumed to be fair to the Surviving Company unless proven unfair by a preponderance of the evidence.
|
|
Delaware law does not have a corresponding statute.
|
Bylaws regarding stockholder proposals
|
|
The New Bylaws provide that a stockholder proposal may be considered at a meeting of stockholders if such proposal is properly requested to be brought before such meeting by a stockholder of the Surviving Company in accordance with New Bylaws, which requires the proposal be delivered to the secretary of the Surviving Company not earlier than the 120th day and not later than the 90th day prior to the meeting and the disclosure of certain information including the name and address of the stockholder, the number of shares directly or indirectly held by the stockholder and any other information relating to the stockholder, beneficial owner or a control person of the stockholder that would be required to be disclosed in a proxy statement.
|
|
The Current Bylaws provide that a stockholder proposal may be considered at a meeting of stockholders if such proposal is properly requested to be brought before such meeting by a stockholder of the Company in accordance with Current Bylaws, which requires the proposal to delivered to the secretary of the Company not less than 60 days nor more than 90 days prior to the first anniversary of the preceding year’s annual meeting of stockholders; provided, however , that in the event that the date of the Special Meeting is advanced more than 30 days prior to such anniversary date or delayed more than 60 days after such anniversary date then to be timely such notice must be received by the Corporation no later than the later of 70 days prior to the date of the meeting or the 10th day following the day on which public announcement of the date of the meeting was made.
|
Bylaws regarding committees of directors
|
|
As permitted by the NRS, the New Bylaws provide that in the absence or disqualification of any member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not constituting a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in place of such absent or disqualified member.
|
|
The Current Bylaws do not contain a corresponding provision.
|
Bylaws regarding forum adjudication for disputes
|
|
The New Bylaws provide that the Eighth Judicial District Court of Clark County, Nevada, shall be the sole and exclusive forum for certain categories of actions brought by stockholders as specified in new Bylaws.
|
|
The Current Charter provides that, to the fullest extent permitted by law, the Court of Chancery of Delaware shall be the sole and exclusive forum for (1) any derivative action or proceeding brought on behalf of the corporation, (2) any action asserting a claim of breach of a fiduciary duty owed by any director or officer of the corporation to the corporation or the corporation’s stockholders, (3) any action asserting a claim against the corporation arising pursuant to any provision of the General Corporation Law or the corporation’s Certificate of Incorporation or Bylaws, or (4) any action asserting a claim against the corporation governed by the internal affairs doctrine.
|
Comparative Rights of Stockholders under Delaware and Nevada
Law
General. The statutory corporate laws
of Nevada, as governed by the NRS, are similar in many respects to those of Delaware, as governed by the DGCL. However, there are
certain differences that may affect your rights as a stockholder, as well as the corporate governance of the Surviving Company.
The following are summaries of material differences between the current rights of stockholders of the Company and the rights of
stockholders of the Surviving Company following the consummation of the Reincorporation.
The following discussion is a brief summary.
It does not provide a complete description of the differences that may affect you. This summary is qualified in its entirety by
reference to the NRS and DGCL, as well as the forms of the New Charter and New Bylaws, which are attached as Appendix B
and Appendix C, respectively, to this Proxy Statement, and which will come into effect concurrently with the consummation
of the Reincorporation.
Increasing or Decreasing Authorized Capital
Stock. The NRS allows the board of directors of a corporation, unless restricted by the articles of incorporation, to increase
or decrease the number of authorized shares in a class or series of the corporation’s shares and correspondingly effect a
forward or reverse split of any class or series of the corporation’s shares (and change the par value thereof) without a
vote of the stockholders, so long as the action taken does not adversely change or alter any right or preference of the stockholders
and does not include any provision or provisions pursuant to which only money will be paid or scrip issued to stockholders who
hold 10% or more of the outstanding shares of the affected class and series, and who would otherwise be entitled to receive fractions
of shares in exchange for the cancellation of all of their outstanding shares. Delaware law has no similar provision.
Classified Board of Directors. The DGCL
permits any Delaware corporation to classify its board of directors into as many as three classes with staggered terms of office.
If this were done, the stockholders would elect only one class each year and each class would have a term of office of three years.
The Current Charter and Current Bylaws do provide for a classified board of directors.
The NRS also permits any Nevada corporations
to classify its board of directors into as many as four classes with staggered terms of office, where at least one-fourth of the
directors must be elected annually. The New Charter and New Bylaws also provide for a classified board of directors, and thus all
directors will still be elected each year for three-year terms following the consummation of the Reincorporation.
Cumulative Voting. Cumulative voting
for directors entitles each stockholder to cast a number of votes that is equal to the number of voting shares held by such stockholder
multiplied by the number of directors to be elected and to cast all such votes for one nominee or distribute such votes among up
to as many candidates as there are positions to be filled. Cumulative voting may enable a minority stockholder or group of stockholders
to elect at least one representative to the board of directors where such stockholders would not be able to elect any directors
without cumulative voting.
Although the DGCL does not generally grant
stockholders cumulative voting rights, a Delaware corporation may provide in the corporation’s certificate of incorporation
for cumulative voting in the election of directors. The NRS also permits any Nevada corporation to provide in its articles of incorporation
the right to cumulative voting in the election of directors as long as certain procedures are followed.
The Current Charter does not provide for cumulative
voting in the election of directors. Similarly, the New Charter does not provide for cumulative voting.
Vacancies. Under both the DGCL and the
NRS, vacancies on the board of directors during the year may be filled by the affirmative vote of a majority of the remaining directors
then in office, even if less than a quorum. Any director so appointed will hold office for the remainder of the term of the director
no longer on the board.
Removal of Directors. Under the DGCL,
the holders of a majority of shares of each class entitled to vote at an election of directors may vote to remove any director
or the entire board without cause unless (i) the board is a classified board, in which case directors may be removed only for cause,
or (ii) the corporation has cumulative voting, in which case, if less than the entire board is to be removed, no director may be
removed without cause if the votes cast against his or her removal would be sufficient to elect him. Thus, under the DGCL, a director
of a corporation that does have a classified board or permit cumulative voting, such as the Company, may be removed only for cause
by the affirmative vote of a majority of the outstanding shares entitled to vote at an election of directors.
The NRS requires the vote of the holders of
at least two-thirds of the shares or class or series of shares of the issued and outstanding stock entitled to vote at an election
of directors in order to remove a director or all of the directors. Furthermore, the NRS does not make a distinction between removals
for cause and removals without cause. The articles of incorporation may provide for a higher voting threshold but not a lower one.
Fiduciary Duty and Business Judgment.
Nevada, like most jurisdictions, requires that directors and officers of Nevada corporations exercise their powers in good faith
and with a view to the interests of the corporation but, unlike other jurisdictions, fiduciary duties of directors and officers
are codified in the NRS. As a matter of law, directors and officers are presumed to act in good faith, on an informed basis and
with a view to the interests of the corporation in making business decisions. In performing such duties, directors and officers
may exercise their business judgment through reliance on information, opinions, reports, financial statements and other financial
data prepared or presented by corporate directors, officers or employees who are reasonably believed to be reliable and competent.
Professional reliance may also be extended to legal counsel, public accountants, advisers, bankers or other persons reasonably
believed to be competent, and to the work of a committee (on which the particular director or officer does not serve) if the committee
was established and empowered by the corporation’s board of directors, and if the committee’s work was within its designated
authority and was about matters on which the committee was reasonably believed to merit confidence. However, directors and officers
may not rely on such information, opinions, reports, books of account or similar statements if they have knowledge concerning the
matter in question that would make such reliance unwarranted.
Under Delaware law, members of the board of
directors or any committee designated by the board of directors are similarly entitled to rely in good faith upon the records of
the corporation and upon such information, opinions, reports and statements presented to the corporation by corporate officers,
employees, committees of the board of directors or other persons as to matters such member reasonably believes are within such
other person’s professional or expert competence, provided that such other person has been selected with reasonable care
by or on behalf of the corporation. Such appropriate reliance on records and other information protects directors from liability
related to decisions made based on such records and other information. Unlike Delaware law, Nevada law extends the statutory protection
for reliance on such persons to corporate officers.
Flexibility for Decisions, including Takeovers.
Nevada provides directors with more discretion than Delaware in making corporate decisions, including decisions made in takeover
situations. Under Nevada law, director and officer actions taken in response to a change or potential change in control are granted
the benefits of the business judgment rule. However, in the case of an action that impedes the rights of stockholders to vote for
or remove directors, directors will only be given the advantage of the business judgment rule if the directors have reasonable
grounds to believe a threat to corporate policy and effectiveness exists and the action taken that impedes the exercise of the
stockholders’ rights is reasonable in relation to such threat.
In exercising their powers, including in response
to a change or potential change of control, directors and officers of Nevada corporations may consider the effect of the decision
on several corporate constituencies in addition to the stockholders, including the corporation’s employees, suppliers, creditors,
customers, the economy of the state and nation, the interests of the community and society in general, and the long-term as well
as short-term interests of the corporation and its stockholders, including the possibility that these interests may be best served
by the continued independence of the corporation. To underscore the discretion of directors and officers of Nevada corporations,
the NRS specifically states that such directors and officers are not required to consider the effect of a proposed corporate action
upon any constituent as a dominant factor.
The DGCL does not provide a similar list of
statutory factors that corporate directors and officers may consider in making decisions. In a number of cases, Delaware law has
been interpreted to provide that fiduciary duties require directors to accept an offer from the highest bidder regardless of the
effect of such sale on the corporate constituencies other than the stockholders. Thus, the flexibility granted to directors of
Nevada corporations when making business decisions, including in the context of a hostile takeover, are greater than those granted
to directors of Delaware corporations.
Limitation on Personal Liability of Directors
and Officers. The NRS and the DGCL each permit corporations to adopt provisions in their charter documents that eliminate or
limit the personal liability of directors to the corporation or their stockholders for monetary damages for breach of a director’s
fiduciary duty, subject to the differences discussed below.
Both jurisdictions preclude liability limitation
for acts or omissions not in good faith or involving intentional misconduct and for paying dividends or repurchasing stock out
of other than lawfully available funds. Unlike the DGCL, however, the NRS does not expressly preclude a corporation from limiting
liability for a director’s breach of the duty of loyalty or for any transaction from which a director derives an improper
personal benefit. Alternatively, the NRS permits a corporation to renounce in its articles of incorporation any interest or expectancy
to participate in specific or specified classes or categories of business opportunities. In addition, the NRS provision permitting
limitation of liability applies to both directors and officers and expressly applies to liabilities owed to creditors of the corporation.
Furthermore, under the NRS, it is not necessary to adopt provisions in the articles of incorporation limiting personal liability
of directors as this limitation is provided by statute.
Finally, in Nevada, in order for a director
or officer to be individually liable to the corporation or its stockholders or creditors for damages as a result of any act or
failure to act, it must be proven that the directors’ or officers’ act or failure to act constituted a breach of his
or her fiduciary duties as a director or officer and that the breach of those duties involved intentional misconduct, fraud or
a knowing violation of law.
Thus, the NRS provides broader protection from
personal liability for directors and officers than the DGCL.
Indemnification. The NRS and the DGCL
each permit corporations to indemnify directors, officers, employees and agents in similar circumstances, subject to the differences
discussed below.
In suits that are not brought by or in the
right of the corporation, both jurisdictions permit a corporation to indemnify current and former directors, officers, employees
and agents for attorneys’ fees and other expenses, judgments and amounts paid in settlement that the person actually and
reasonably incurred in connection with the action, suit or proceeding. The person seeking indemnity may recover as long as he or
she acted in good faith and believed his or her actions were either in the best interests of or not opposed to the best interests
of the corporation. Under the NRS, the person seeking indemnity may also be indemnified if he or she is not liable for breach of
his or her fiduciary duties. Similarly, with respect to a criminal proceeding, the person seeking indemnification must not have
had any reasonable cause to believe his or her conduct was unlawful.
In derivative suits, a corporation in either
jurisdiction may indemnify its directors, officers, employees or agents for expenses that the person actually and reasonably incurred.
A corporation may not indemnify a person if the person was adjudged to be liable to the corporation unless a court otherwise orders.
No corporation may indemnify a party unless
it decides that indemnification is proper. Under the DGCL, the corporation through its stockholders, directors or independent legal
counsel will determine that the conduct of the person seeking indemnity conformed with the statutory provisions governing indemnity.
Under the NRS, the corporation through its stockholders, directors or independent counsel must only determine that the indemnification
is proper.
Advancement of Expenses. Although the
DGCL and NRS have substantially similar provisions regarding indemnification by a corporation of its officers, directors, employees
and agents, the NRS provides broader indemnification in connection with stockholder derivative lawsuits, in particular with respect
to advancement of expenses incurred by an officer or director in defending a civil or criminal action, suit or other proceeding.
The DGCL provides that expenses incurred by
an officer or director in defending any civil, criminal, administrative or investigative action, suit or proceeding may be paid
by the corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or
on behalf of such director or officer to repay the amount if it is ultimately determined that he is not entitled to be indemnified
by the corporation. A Delaware corporation has the discretion to decide whether or not to advance expenses, unless its certificate
of incorporation or bylaws provide for mandatory advancement.
In contrast, under the NRS, the articles of
incorporation, the bylaws or an agreement made by the corporation may provide that the corporation must pay advancements of expenses
in advance of the final disposition of the action, suit or proceedings upon receipt of an undertaking by or on behalf of the director
or officer to repay the amount if it is ultimately determined that he is not entitled to be indemnified by the corporation.
Action by Written Consent of Directors.
Both the DGCL and NRS provide that, unless the articles or certificate of incorporation or the bylaws provide otherwise, any
action required or permitted to be taken at a meeting of the directors or a committee thereof may be taken without a meeting if
all members of the board or committee, as the case may be, consent to the action in writing.
Actions by Written Consent of Stockholders.
Both the DGCL and NRS provide that, unless the articles or certificate of incorporation provides otherwise, any action required
or permitted to be taken at a meeting of the stockholders may be taken without a meeting if the holders of outstanding stock having
at least the minimum number of votes that would be necessary to authorize or take the action at a meeting of stockholders consent
to the action in writing. In addition, the DGCL requires the corporation to give prompt notice of the taking of corporate action
without a meeting by less than unanimous written consent to those stockholders who did not consent in writing. There is no equivalent
requirement under the NRS.
The NRS also permits a corporation to prohibit
stockholder action by written consent in lieu of a meeting of stockholders by including such prohibition in its bylaws.
The Current Bylaws provide that any stockholders
may act by written consent if such consent is signed by holders of not less than the minimum number of votes that would be required
to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. The New Bylaws
contain a substantially similar provision.
Dividends and Distributions. Delaware
law is more restrictive than Nevada law with respect to dividend payments. Unless further restricted in the certificate of incorporation,
the DGCL permits a corporation to declare and pay dividends out of either (i) surplus, or (ii) if no surplus exists, out of net
profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year (provided that the amount of capital
of the corporation is not less than the aggregate amount of the capital represented by the issued and outstanding stock of all
classes having a preference upon the distribution of assets). The DGCL defines surplus as the excess, at any time, of the net assets
of a corporation over its stated capital. In addition, the DGCL provides that a corporation may redeem or repurchase its shares
only when the capital of the corporation is not impaired and only if such redemption or repurchase would not cause any impairment
of the capital of the corporation.
The NRS provides that no distribution (including
dividends on, or redemption or repurchases of, shares of capital stock) may be made if, after giving effect to such distribution,
(i) the corporation would not be able to pay its debts as they become due in the usual course of business, or, (ii) except as otherwise
specifically permitted by the articles of incorporation, the corporation’s total assets would be less than the sum of its
total liabilities plus the amount that would be needed at the time of a dissolution to satisfy the preferential rights of preferred
stockholders (the condition in this clause (ii), the “Balance Sheet Test”). Directors may consider financial statements
prepared on the basis of accounting practices that are reasonable in the circumstances, a fair valuation, including but not limited
to unrealized appreciation and depreciation, and any other method that is reasonable in the circumstances. Pursuant to NRS 78.288(2)(b),
in the New Charter, the Surviving Company is specifically allowed to make any distribution that otherwise would be prohibited by
the Balance Sheet Test.
To date, the Company has not paid dividends
on its shares of common stock. The payment of dividends following the consummation of the Reincorporation, if any, will be within
the discretion of the board of directors of the Surviving Company. Our Board (which will be the board of directors of the Surviving
Company immediately following the Reincorporation) does not anticipate that the Surviving Company will pay dividends in the foreseeable
future.
Restrictions on Business Combinations. Both
Delaware and Nevada law provide certain protections to stockholders in connection with certain business combinations. These protections
can be found in NRS 78.411 to 78.444, inclusive, and Section 203 of the DGCL.
Under Section 203 of the DGCL, certain “business
combinations” with “interested stockholders” of the Company are subject to a three-year moratorium unless specified
conditions are met. For purposes of Section 203, the term “business combination” is defined broadly to include (i)
mergers with or caused by the interested stockholder; (ii) sales or other dispositions to the interested stockholder (except proportionately
with the corporation’s other stockholders) of assets of the corporation or a subsidiary equal to 10% or more of the aggregate
market value of either the corporation’s consolidated assets or its outstanding stock; (iii) the issuance or transfer by
the corporation or a subsidiary of stock of the corporation or such subsidiary to the interested stockholder (except for transfers
in a conversion or exchange or a pro rata distribution or certain other transactions, none of which increase the interested stockholder’s
proportionate ownership of any class or series of the corporation’s or such subsidiary’s stock); or (iv) receipt by
the interested stockholder (except proportionately as a stockholder), directly or indirectly, of any loans, advances, guarantees,
pledges or other financial benefits provided by or through the corporation or a subsidiary.
The three-year moratorium imposed on business
combinations by Section 203 of the DGCL does not apply if: (i) prior to the time on which such stockholder becomes an interested
stockholder the board of directors approves either the business combination or the transaction which resulted in the person becoming
an interested stockholder; (ii) the interested stockholder owns 85% of the corporation’s voting stock upon consummation of
the transaction that made him or her an interested stockholder (excluding from the 85% calculation shares owned by directors who
are also officers of the target corporation and shares held by employee stock plans that do not permit employees to decide confidentially
whether to accept a tender or exchange offer); or (iii) at or after the time on which such stockholder becomes an interested stockholder,
the board approves the business combination and it is also approved at a stockholder meeting by at least two-thirds (66-2/3%) of
the outstanding voting stock not owned by the interested stockholder.
In contrast, the NRS imposes a maximum moratorium
of two years versus Delaware’s three-year moratorium on business combinations. However, NRS 78.411 to 78.444, inclusive,
regulate combinations more stringently. First, an interested stockholder is defined as a beneficial owner of 10% or more of the
voting power. Second, the two-year moratorium can be lifted only by advance approval by a corporation’s board of directors,
as opposed to Delaware’s provision that allows interested stockholder combinations with stockholder approval at the time
of such combination. Finally, after the two-year period, combinations remain prohibited unless (i) they are approved by the board
of directors, the disinterested stockholders or 60% of the outstanding voting power not beneficially owned by the interested party
and its affiliates and associates or (ii) the interested stockholders satisfy certain fair value requirements. But note that these
statutes do not apply to any combination of a corporation and an interested stockholder after the expiration of four years after
the person first became an interested stockholder.
Companies are entitled to opt out of the business
combination provisions of the DGCL and NRS. The Company has not opted out of the business combination provisions of Section 203
of the DGCL. In the New Charter, the Surviving Company does not opt out of the business combination provisions of NRS 78.411 to
78.444, inclusive.
Acquisition of Controlling Interests.
In addition to the restrictions on business combinations with interested stockholders, Nevada law also protects the corporation
and its stockholders from persons acquiring a “controlling interest” in a corporation. The provisions can be found
in NRS 78.378 to 78.3793, inclusive. Delaware law does not have similar provisions.
Pursuant to NRS 78.379, any person who acquires
a controlling interest in a corporation may not exercise voting rights on any control shares unless such voting rights are conferred
by a majority vote of the disinterested stockholders of the issuing corporation at a special meeting of such stockholders held
upon the request and at the expense of the acquiring person. NRS 78.3785 provides that a “controlling interest” means
the ownership of outstanding voting shares of an issuing corporation sufficient to enable the acquiring person, individually or
in association with others, directly or indirectly, to exercise (i) one fifth or more but less than one third, (ii) one third or
more but less than a majority or (iii) a majority or more of the voting power of the issuing corporation in the election of directors,
and voting rights must be conferred by a majority of the disinterested stockholders as each threshold is reached and/or exceeded.
In the event that the control shares are accorded full voting rights and the acquiring person acquires control shares with a majority
or more of all the voting power, any stockholder, other than the acquiring person, who does not vote in favor of authorizing voting
rights for the control shares is entitled to demand payment for the fair value of such person’s shares, and the corporation
must comply with the demand.
NRS 78.378(1) provides that the control share
statutes of the NRS do not apply to any acquisition of a controlling interest in an issuing corporation if the articles of incorporation
or bylaws of the corporation in effect on the 10th day following the acquisition of a controlling interest by the acquiring person
provide that the provisions of those sections do not apply to the corporation or to an acquisition of a controlling interest specifically
by types of existing or future stockholders, whether or not identified. In addition, NRS 78.3788 provides that the control share
statutes of the NRS apply only to a corporation that has 200 or more stockholders, at least 100 of whom are stockholders of record
and residents of Nevada, and which does business directly or indirectly in Nevada. NRS 78.378(2) provides that the corporation
may impose stricter requirements if it so desires.
Stockholder Vote for Mergers and Other Corporate
Reorganizations. Under the DGCL, unless the certificate or articles of incorporation specifies a higher percentage, the stockholders
of a corporation that is being acquired in a merger or selling substantially all of its assets must authorize such merger or sale
of assets by vote of an absolute majority of outstanding shares entitled to vote. The corporation’s board of directors must
also approve such transaction.
Similarly, under the NRS, a merger or sale
of all assets requires authorization by stockholders of the corporation being acquired or selling its assets by an absolute majority
of outstanding shares entitled to vote, as well as approval of such corporation’s board of directors. However, it is not
entirely clear under Nevada law if stockholder authorization is required for the sale of less than all of the assets of a corporation.
Although a substantial body of case law has been developed in Delaware as to what constitutes the “sale of substantially
all of the assets” of a corporation, it is difficult to determine the point at which a sale of virtually all, but less than
all, of a corporation’s assets would be considered a “sale of all of the assets” of the corporation for purposes
of Nevada law. It is likely that many sales of less than all of the assets of a corporation requiring stockholder authorization
under Delaware law would not require stockholder authorization under Nevada law.
The DGCL and NRS have substantially similar
provisions with respect to approval by stockholders of a surviving corporation in a merger. The DGCL does not require a stockholder
vote of a constituent corporation in a merger (unless the corporation provides otherwise in its certificate of incorporation) if
(i) the plan of merger does not amend the existing certificate of incorporation, (ii) each share of stock of such constituent corporation
outstanding immediately before the effective date of the merger is an identical outstanding share after the effective date of merger
and (iii) either no shares of the common stock of the surviving corporation and no shares, securities or obligations convertible
into such stock are to be issued or delivered under the plan of merger, or the authorized unissued shares or treasury shares of
the common stock of the surviving corporation to be issued or delivered under the plan of merger plus those initially issuable
upon conversion of any other shares, securities or obligations to be issued or delivered under such plan do not exceed 20% of the
shares of common stock of such constituent corporation outstanding immediately prior to the effective date of the merger. The NRS
does not require a stockholder vote of the surviving corporation in a merger under substantially similar circumstances.
The Current Charter does not require a higher
percentage to vote to approve certain corporate transactions. The New Charter also does not specify a higher percentage.
Appraisal or Dissenter’s Rights.
In both jurisdictions, dissenting stockholders of a corporation engaged in certain major corporate transactions are entitled to
appraisal rights. Appraisal rights permit a stockholder to receive cash equal to the fair market value of the stockholder’s
shares (as determined by agreement of the parties or by a court) in lieu of the consideration such stockholder would otherwise
receive in any such transaction.
Under Section 262 of the DGCL, appraisal rights
are generally available for the shares of any class or series of stock of a Delaware corporation in a merger or consolidation,
provided that no appraisal rights are available with respect to shares of any class or series of stock if, at the record date for
the meeting held to approve such transaction, such shares of stock, or depositary receipts in respect thereof, are either (i) listed
on a national securities exchange or (ii) held of record by more than 2,000 holders, unless the stockholders receive in exchange
for their shares anything other than shares of stock of the surviving or resulting corporation (or depositary receipts in respect
thereof), or of any other corporation that is listed on a national securities exchange or held by more than 2,000 holders of record,
cash in lieu of fractional shares or fractional depositary receipts described above or any combination of the foregoing.
In addition, Section 262 of the DGCL allows
beneficial owners of shares to file a petition for appraisal without the need to name a nominee holding such shares on behalf of
such owner as a nominal plaintiff and makes it easier than under Nevada law to withdraw from the appraisal process and accept the
terms offered in the merger or consolidation. Under the DGCL, no appraisal rights are available to stockholders of the surviving
or resulting corporation if the merger did not require their approval.
The Current Charter and Current Bylaws do not
provide for appraisal rights in addition to those provided by the DGCL. Therefore, because our common stock is listed on The NASDAQ
Capital Market, and holders of our common stock will receive in the Merger only shares of Surviving Company common stock, which
will be listed on The NASDAQ Capital Market, holders of our common stock will not be entitled to appraisal rights in the Merger
with respect to their shares of our common stock.
Under the NRS, a stockholder is entitled to
dissent from, and obtain payment for, the fair value of his or her shares in the event of (i) certain acquisitions of a controlling
interest in the corporation, (ii) consummation of a plan of merger, if approval by the stockholders is required and the stockholder
is entitled to vote on the merger or if the domestic corporation is a subsidiary and is merged with its parent, (iii) a plan of
exchange in which the corporation is a party or (iv) any corporate action taken pursuant to a vote of the stockholders, if the
articles of incorporation, bylaws or a resolution of the board of directors provides that voting or nonvoting stockholders are
entitled to dissent and obtain payment for their shares.
Holders of securities that are listed on a
national securities exchange or traded in an organized market and held by at least 2,000 stockholders of record with a market value
of at least $20,000,000 are generally not entitled to dissenter’s rights. However, this exception is not available if (i)
the articles of incorporation of the corporation issuing the shares provide that such exception is not available, (ii) the resolution
of the board of directors approving the plan of merger, conversion or exchange expressly provide otherwise or (iii) the holders
of the class or series of stock are required under the plan of merger or exchange to accept for the shares anything except cash,
shares of stock as described in NRS 92A.390(3) or a combination thereof. The NRS prohibits a dissenting stockholder from voting
his or her shares or receiving certain dividends or distributions after his or her dissent. Like the Current Charter and Current
Bylaws, the New Charter and New Bylaws do not provide for dissenter’s rights in addition to those provided by the NRS.
The mechanics and timing procedures vary somewhat
between Delaware and Nevada but both require technical compliance with specific notice and payment protocols.
Special Meetings of the Stockholders. The
DGCL permits special meetings of stockholders to be called by the board of directors or by any other person authorized in the certificate
of incorporation or bylaws to call a special stockholder meeting.
In contrast, the NRS permits special meetings
of stockholders to be called by the entire board of directors, any two directors or the President, unless the articles of incorporation
or bylaws provide otherwise.
Under the Current Bylaws, a special meeting
of stockholders may be called by the Secretary of the Company at the written request of the majority of our Board, by the Chairman
of our Board, by the President of the Company or by the stockholders owning a majority of the shares outstanding and entitled to
vote. The New Bylaws contain a substantially similar provision.
Special Meetings Pursuant to Petition of
Stockholders. The DGCL provides that a director or a stockholder of a corporation may apply to the Court of Chancery of Delaware
if the corporation fails to hold an annual meeting for the election of directors or there is no written consent to elect directors
in lieu of an annual meeting for a period of 30 days after the date designated for the Special Meeting or, if there is no date
designated, within 13 months after the last annual meeting.
Nevada law is more restrictive. Under the NRS,
stockholders having not less than 15% of the voting interest may petition the district court to order a meeting for the election
of directors if a corporation fails to call a meeting for that purpose within 18 months after the last meeting at which directors
were elected.
Adjournment of Stockholder Special Meetings.
Under the DGCL, if a meeting of stockholders is adjourned due to lack of a quorum and the adjournment is for more than 30 days,
or if after the adjournment a new record date is fixed for the adjourned meeting, notice of the adjourned meeting must be given
to each stockholder of record entitled to vote at the meeting. At the adjourned meeting the corporation may transact any business
that might have been transacted at the original meeting.
In contrast, under the NRS, a corporation is
not required to give any notice of an adjourned meeting or of the business to be transacted at an adjourned meeting, other than
by announcement at the meeting at which the adjournment is taken, unless the board fixes a new record date for the adjourned meeting
or the meeting date is adjourned to a date more than 60 days later than the date set for the original meeting, in which case a
new record date must be fixed and notice given.
Duration of Proxies. Under the DGCL,
a proxy executed by a stockholder will remain valid for a period of three years, unless the proxy provides for a longer period.
Under the NRS, a proxy is effective only for
a period of six months, unless it is coupled with an interest or unless otherwise provided in the proxy, which duration may not
exceed seven years. The NRS also provides for irrevocable proxies, without limitation on duration, in limited circumstances.
Stockholder Inspection Rights. The DGCL
grants any stockholder or beneficial owner of shares the right, upon written demand under oath stating the proper purpose thereof,
either in person or by attorney or other agent, to inspect and make copies and extracts from a corporation’s stock ledger,
list of stockholders and its other books and records for any proper purpose. A proper purpose is one reasonably related to such
person’s interest as a stockholder.
Inspection rights under Nevada law are more
limited. The NRS grants any person who has been a stockholder of record of a corporation for at least six months immediately preceding
the demand, or any person holding, or thereunto authorized in writing by the holders of, at least 5% of all of its outstanding
shares, upon at least five days’ written demand the right to inspect in person or by agent or attorney, during usual business
hours (i) the articles of incorporation, and all amendments thereto, (ii) the bylaws and all amendments thereto and (iii) a stock
ledger or a duplicate stock ledger, revised annually, containing the names, alphabetically arranged, of all persons who are stockholders
of the corporation, showing their places of residence, if known, and the number of shares held by them respectively. A Nevada corporation
may require a stockholder to furnish the corporation with an affidavit that such inspection is for a proper purpose related to
his or her interest as a stockholder of the corporation.
In addition, the NRS grants certain stockholders
the right to inspect the books of account and records of a corporation for any proper purpose. The right to inspect the books of
account and all financial records of a corporation, to make copies of records and to conduct an audit of such records is granted
only to a stockholder who owns at least 15% of the issued and outstanding shares of a Nevada corporation, or who has been authorized
in writing by the holders of at least 15% of such shares. However, these requirements do not apply to any corporation that furnishes
to its stockholders a detailed, annual financial statement or any corporation that has filed during the preceding 12 months all
reports required to be filed pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934.
THE PREDICTIVE BOARD UNANIMOUSLY RECOMMENDS
THAT YOU VOTE “FOR” THE PROPOSAL TO APPROVE THE REINCORPORATION OF THE COMPANY IN NEVADA AS DESCRIBED HEREIN.
proposal no. 2: APPROVal
of a proposal to adjourn the Special Meeting, if necessary, to solicit additional proxies for approval of Proposal No. 1
In the event that there are not sufficient votes
to constitute a quorum or to approve the proposal to reincorporate in Nevada (Proposal No. 1) at the Special Meeting, such proposal
could not be approved unless such meeting was adjourned to a later date or dates in order to permit further solicitation of proxies.
In order to allow proxies that have been received by us at the time of the Special Meeting to be voted for adjournment, you are
being asked to consider a proposal to approve the adjournment of the Special Meeting, if necessary or appropriate, including to
permit further solicitation of proxies if necessary to obtain additional votes in favor of such proposal. If there are sufficient
votes to constitute a quorum and approve Proposal No. 1 at the Special Meeting, the chairman of the Special Meeting may determine
that no action will be taken on this proposal to adjourn. If there are sufficient votes at the Special Meeting to approve this
Proposal No. 2, but there are not sufficient votes to approve Proposal No.1, the chairman of the Special Meeting intends to declare
that this Proposal No. 2 has been approved and to then adjourn the meeting for the purpose of soliciting additional proxies to
obtain the approval of Proposal No. 1.
Stockholder Vote Required
In order to be approved, Proposal No. 2 must
be approved by a majority of shares present and entitled to vote at the virtual meeting or by proxy at the Special Meeting. Abstentions
will have the same effect as a vote against Proposal 2, and there will be no broker non-votes on Proposal No. 2.
THE
PREDICTIVE BOARD UNANIMOUSLY RECOMMENDS THAT YOU VOTE “FOR” THIS PROPOSAL TO ADJOURN THE Special MEETING AS SET FORTH
HEREIN.
SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth as of October
28, 2020 certain information regarding beneficial ownership of our common stock by:
|
•
|
Each person known to us to beneficially own 5% or more of our common stock;
|
|
•
|
Each executive officer who in this proxy statement are collectively referred to as the “Named Executive Officers;”
|
|
•
|
Each of our directors; and
|
|
•
|
All of our executive officers (as that term is defined under the rules and regulations of the SEC) and directors as a group.
|
We have determined beneficial ownership in accordance
with Rule 13d-3 under the Exchange Act. Beneficial ownership generally means having sole or shared voting or investment power with
respect to securities. Unless otherwise indicated in the footnotes to the table, each stockholder named in the table has sole voting
and investment power with respect to the shares of common stock set forth opposite the stockholder’s name. We have based
our calculation of the percentage of beneficial ownership on 17,550,084 shares of the Company’s common stock outstanding
on October 28, 2020. Unless otherwise noted below, the address for each person or entity listed in the table is c/o Predictive
Oncology Inc., 2915 Commers Drive, Suite 900, Eagan, Minnesota 55121.
|
Amount and
Nature of
|
|
Percent
|
|
Beneficial
|
|
of
|
Name of Beneficial Owner(1)
|
Ownership
|
|
Class
|
|
|
|
|
Officers and Directors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carl Schwartz (2)
|
1,611,341
|
|
|
|
9.1
|
%
|
|
|
|
|
|
|
|
Bob Myers (3)
|
45,013
|
|
|
|
*
|
|
|
|
|
|
|
|
|
Chuck Nuzum (4)
|
12,854
|
|
|
|
*
|
|
|
|
|
|
|
|
|
Gregory S. St. Clair, Sr. (5)
|
10,840
|
|
|
|
*
|
|
|
|
|
|
|
|
|
Daniel Handley (6)
|
16,435
|
|
|
|
*
|
|
|
|
|
|
|
|
|
Nancy Chung-Welch(7)
|
10,840
|
|
|
|
*
|
|
|
|
|
|
|
|
|
J. Melville Engle (8)
|
81,421
|
|
|
|
*
|
|
|
|
|
|
|
|
|
Richard L. Gabriel (9)
|
63,915
|
|
|
|
*
|
|
|
|
|
|
|
|
|
All directors and executive officers as a group (8 persons)
|
1,852,659
|
|
|
|
10.35
|
%
|
|
*
|
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 (i) 1,460,914 shares owned directly, and (ii) 150,427 shares issuable upon exercise of options held by Dr. Schwartz that are exercisable within 60 days of October 28, 2020.
|
|
(3)
|
Includes options to purchase 44,936 shares that are exercisable within 60 days of October 28, 2020.
|
|
(4)
|
Includes options to purchase 6,142 shares that are exercisable within 60 days of October 28, 2020.
|
|
(5)
|
Includes options to purchase 6,142 shares that are exercisable within 60 days of October 28, 2020.
|
|
(6)
|
Includes options to purchase 12,365 shares that are exercisable within 60 days of October 28, 2020.
|
|
(7)
|
Includes options to purchase 6,142 shares that are exercisable within 60 days of October 28, 2020.
|
|
(8)
|
Includes options to purchase 77,351 shares that are exercisable within 60 days of October 28, 2020.
|
|
(9)
|
Includes options to purchase 51,845 shares that are exercisable within 60 days of October 28, 2020.
|
OTHER MATTERS
As of the date of this proxy statement, management
does not intend to present any other items of business at the Special Meeting other than the proposals described herein.
|
By Order of the Board of Directors
|
|
|
|
/s/ Carl Schwartz
|
|
|
|
Carl Schwartz
|
|
Chief Executive Officer
|
Eagan, Minnesota
November 3, 2020
PREDICTIVE ONCOLOGY INC.
2915 COMMERS DRIVE, SUITE 900
EAGAN, MN 55121
|
VOTE BY INTERNET
Before The Meeting - Go to www.proxyvote.com
Use the Internet to transmit your voting instructions and for electronic
delivery of information up until 11:59 p.m. Eastern Time on November 30, 2020. Have your proxy card in hand when you access the
web site and follow the instructions to obtain your records and to create an electronic voting instruction form.
During The Meeting - Go to www.virtualshareholdermeeting.com/POAI2020SM
You may attend the meeting via the Internet
and vote during the meeting. Have the information that is printed in the box marked by the arrow available and follow the instructions.
VOTE BY PHONE - 1-800-690-6903
Use any touch-tone telephone to transmit
your voting instructions up until 11:59 p.m. Eastern Time on November 30, 2020. Have your proxy card in hand when you call and
then follow the instructions.
VOTE BY MAIL
Mark, sign and date your proxy card and
return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood,
NY 11717.
|
TO VOTE, MARK BLOCKS BELOW IN BLUE OR
BLACK INK AS FOLLOWS:
|
D26251-S12357
|
KEEP THIS PORTION FOR YOUR RECORDS
|
|
|
DETACH AND RETURN THIS PORTION ONLY
|
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND
DATED.
|
|
|
|
|
|
|
|
PREDICTIVE ONCOLOGY INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Board of Directors unanimously recommends a vote "FOR" Proposal Nos. 1 and 2.
|
For
|
Against
|
Abstain
|
|
1. To approve the reincorporation of the Company in Nevada (the "Reincorporation").
|
☐
|
☐
|
☐
|
|
2. To adjourn the Special Meeting, if necessary, to solicit additional proxies for approval of the Reincorporation.
|
☐
|
☐
|
☐
|
|
|
|
|
|
|
THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED AS DIRECTED OR, IF NO DIRECTION IS
GIVEN,
WILL BE VOTED FOR PROPOSAL NOS. 1 AND 2.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Signature [PLEASE SIGN WITHIN BOX]
|
Date
|
|
Signature (Joint Owners)
|
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREDICTIVE ONCOLOGY INC.
SPECIAL MEETING OF STOCKHOLDERS
December 1, 2020
3:00 PM (Central Standard Time)
Virtual Special Meeting - Visit www.virtualshareholdermeeting.com/POAI2020SM
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF
PROXY MATERIALS FOR THE
SPECIAL MEETING OF STOCKHOLDERS TO BE HELD ON
DECEMBER 1, 2020:
The Proxy Statement of Predictive Oncology Inc. is
available at https://investors.predictive-oncology.com/
D26252-S12357
|
|
|
Predictive Oncology Inc.
2915 Commers Drive, Suite 900
Eagan, Minnesota 55121
|
|
PROXY
|
|
|
|
|
This proxy is solicited by the Board of Directors for use at the Special
Meeting on December 1, 2020.
The shares of common stock you hold in your account will be voted as
you specify on the reverse side.
If no choice is specified, the proxy will be voted "FOR"
Proposal Nos. 1 and 2.
The undersigned hereby appoints CARL SCHWARTZ AND BOB MYERS, and
each of them individually, with full power of substitution, as Proxies to represent and vote, as designated below, all shares of
common stock of Predictive Oncology Inc. (the "Company") registered in the name of the undersigned at the Special Meeting
of Stockholders of the Company to be held at 3:00 PM (Central Standard Time) on December 1, 2020 and at any adjournment or postponement
thereof, and the undersigned hereby revokes all proxies previously given with respect to the meeting. The Special Meeting will
be a virtual meeting via live webcast on the Internet. You will be able to attend the Special Meeting virtually, vote and submit
your questions during the meeting by visiting www.virtualshareholdermeeting.com/POAI2020SM. YOU WILL NOT BE ABLE TO ATTEND THE
SPECIAL MEETING IN PERSON.
See reverse for voting instructions
|
|
APPENDIX A
predictive oncology, inc.
nevada Merger Agreement
This AGREEMENT AND PLAN OF MERGER (“Agreement”),
dated as of [___________], 2020, is entered into by and between Predictive Oncology Inc., a Delaware corporation (the “Company”),
and POAI Merger Company Inc., a Nevada corporation and a wholly owned subsidiary of the Company (“NewCo”).
WHEREAS, the Company, whose shares of common
stock are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
desires to reincorporate as a Nevada corporation and has formed NewCo in order to effectuate the reincorporation.
WHEREAS, the board of directors of each of the
Company and NewCo deems it advisable, fair to and in the best interests of such corporations and their respective stockholders
that the Company be merged with and into NewCo, upon the terms and subject to the conditions herein stated, and that NewCo be the
surviving corporation (the “Reincorporation Merger”).
NOW, THEREFORE, in consideration of the premises
and the agreements of the parties hereto contained herein, intending to be legally bound, the parties hereto agree as follows:
Article I
The Reincorporation Merger; Effective Time
Section 1.1. The Reincorporation Merger.
Upon the terms and subject to the conditions set forth in this Agreement, at the Effective Time (as defined in Section 1.2), the
Company shall be merged with and into NewCo whereupon the separate existence of the Company shall cease. NewCo shall be the surviving
corporation (the “Surviving Corporation”) in the Reincorporation Merger and shall continue to be a corporation
formed under the laws of the State of Nevada. The Reincorporation Merger shall have the effects specified in the General Corporation
Law of the State of Delaware, as amended (the “DGCL”) and the Nevada Revised Statutes, as amended (the “NRS”),
and the Surviving Corporation shall succeed, without other transfer, to all of the assets and property (whether real, personal
or mixed), rights, privileges, franchises, immunities and powers of the Company, and shall assume and be subject to all of the
liabilities, obligations and restrictions of every kind and description of the Company, including, without limitation, all outstanding
indebtedness of the Company.
Section 1.2. Effective Time. Unless this
Agreement is terminated or abandoned in accordance with its terms, as soon as practicable following the satisfaction of the conditions
set forth in Article V in accordance with the terms of this Agreement, the Company and NewCo shall cause Articles of Merger to
be executed and filed with the Office of the Secretary of State of Nevada (the “Nevada Articles of Merger”)
and a Certificate of Merger to be executed and filed with the Office of the Secretary of State of Delaware (the “Delaware
Certificate of Merger”). The Reincorporation Merger shall become effective upon the date and time specified in the Nevada
Articles of Merger and the Delaware Certificate of Merger (the “Effective Time”).
Article II
Articles and Bylaws of the Surviving Corporation
Section 2.1. The Articles of Incorporation.
The articles of incorporation of NewCo in effect at the Effective Time shall be amended and restated as set forth on Exhibit
A hereto, including to change the name of the Surviving Corporation to “Predictive Oncology Inc.”, and such
amended and restated articles shall be the articles of incorporation of the Surviving Corporation (such articles of incorporation,
as so amended and restated, the “Articles of Incorporation”), until thereafter amended in accordance with the
provisions provided therein or applicable law.
Section 2.2. The Bylaws. Subject to the
provisions of applicable laws, the bylaws of NewCo in effect at the Effective Time shall be the bylaws of the Surviving Corporation
(the “Bylaws”), until thereafter amended in accordance with the provisions provided therein or applicable law.
Article III
Officers, Directors, Committees, and Corporate Policies of the Surviving Corporation
Section 3.1. Officers. The officers of
the Company at the Effective Time shall, from and after the Effective Time, become the officers of the Surviving Corporation, until
their successors have been duly elected or appointed and qualified or until their earlier death, resignation or removal in accordance
with the Articles of Incorporation and the Bylaws.
Section 3.2. Directors. The board of
directors of the Surviving Corporation effective as of, and immediately following, the Effective Time shall consist of all of the
directors of the Company immediately prior to the Effective Time, each to serve in such capacity until their successors have been
duly elected or appointed and qualified or until their earlier death, resignation or removal in accordance with the Articles of
Incorporation and the Bylaws.
Section 3.3. Committees. Each committee
of the board of directors of the Company existing immediately prior to the Effective time shall, effective as of, and immediately
following, the Effective Time, become a committee of the board of directors of the Surviving Corporation, consisting of the members
of such committee of the Company immediately prior to the Effective Time and governed by the charter of such committee of the Company
in existence immediately prior to the Effective Time, which charter shall, at the Effective Time, become the charter of such committee
of the Surviving Corporation except that the governing law thereof shall be, from and after the Effective Time, the law of Nevada.
Each member of a committee of the board of directors of the Surviving Corporation shall serve in such capacity until his or her
successor has been duly elected or appointed and qualified or until his or her earlier death, resignation or removal in accordance
with the applicable committee charter and the Bylaws.
Section 3.4. Corporate Policies. The
corporate policies of the Surviving Corporation, including, without limitation, its code of business conduct, corporate governance
guidelines, conflict policies and director independence guidelines, effective as of, and immediately following, the Effective Time
shall consist of the corporate policies, including, without limitation, the code of business conduct, corporate governance guidelines,
conflict policies and director independence guidelines, of the Company immediately prior to the Effective Time.
Article IV
Effect of the Merger on Capital Stock; Certificates
Section 4.1. Effect of Merger on Capital
Stock. At the Effective Time, as a result of the Reincorporation Merger and without any action on the part of the Company,
NewCo or the stockholders of the Company:
(a) Each share of common stock, par
value $0.01, of the Company (“Company Common Stock”) issued and outstanding immediately prior to the Effective
Time shall be converted (without the surrender of stock certificates or any other action by NewCo, the Company or the stockholders
of the Company) into one fully paid and non-assessable share of common stock, par value $0.01, of the Surviving Corporation (“Surviving
Corporation Common Stock”), and all shares of Company Common Stock shall be canceled and retired and shall cease to exist.
(b) Each share of Series B Preferred
Stock of the Company (the “Preferred B Stock”) issued and outstanding immediately prior to the Effective Time
shall be cancelled and retired and shall cease to exist. As a result of such cancellation, each holder of Preferred B Stock shall
receive from the Company a cash payment in an amount equal to the fair market value of the Preferred B Stock held by such holder
immediately prior to the Effective Time, based on (i) the number of shares of the Company’s common stock into which such
Preferred B Stock is then convertible and (ii) the closing price of the Company’s common stock on the Nasdaq Capital Market
on the day prior.
(c) With respect to the number of
shares of Company Common Stock reserved for issuance under the Company’s equity compensation plans (including all amendments
or modifications, collectively, the “Plans”), an equal number of shares of Surviving Corporation Common Stock
shall be so reserved. The Surviving Corporation shall assume the sponsorship of the Plans, the rights and obligations of the Company
thereunder, and the rights and obligations of the Company under all award agreements evidencing any award issued under any Plan
or any inducement award with respect to Company Common Stock (including all amendments and modifications, collectively, the “Award
Agreements”), in each case in accordance with the terms thereof and applicable law. Each equity-based award with respect
to Company Common Stock issued and outstanding immediately prior to the Effective Time that was granted pursuant to the Plans and
the Award Agreements (an “Equity Award”) shall be converted into a corresponding equity-based award with respect
to the number of shares of Surviving Corporation Common Stock equal to the number of shares of Company Common Stock underlying
such Equity Award at the Effective Time, in accordance with the terms of the applicable Plan and Award Agreement. Such converted
equity-based award shall be subject to the same terms and conditions applicable to the corresponding Equity Award prior to the
conversion, including any vesting and forfeiture conditions. Further, none of the execution of this Agreement, the Reincorporation
Merger or other transaction contemplated herein is intended, or shall be deemed, to constitute a “Change in Control”
(or term of similar import) under any Plan, Award Agreement, employment agreement or other employee benefit plan of the Company
or its affiliates. Each share of common stock, par value $0.001, of NewCo registered in the name of the Company shall be reacquired
by the Surviving Corporation and canceled and retired, and shall resume the status of authorized and unissued Surviving Corporation
Common Stock. No shares of Surviving Corporation Common Stock or other securities of the Surviving Corporation shall be issued
in respect thereof.
Section 4.2. Certificates. At and after
the Effective Time, all of the outstanding certificates which immediately prior thereto represented shares of Company Common Stock,
or options, warrants or other securities of the Company shall be deemed for all purposes to evidence ownership of and to represent
a number of shares of Surviving Corporation Common Stock equal to the number of shares of Company Common Stock represented thereby
or that were acquirable pursuant to such options, warrants or other securities of the Surviving Corporation, as the case may be,
into which the shares of Company Common Stock, or options, warrants or other securities of the Company represented by such certificates
shall have been converted as herein provided and shall be so registered on the books and records of the Surviving Corporation or
its transfer agent. The registered owner of any such outstanding certificate shall, until such certificate shall have been surrendered
for transfer or otherwise accounted for to the Surviving Corporation or its transfer agent, have and be entitled to exercise any
voting and other rights with respect to, and to receive any dividends and other distributions upon, the shares of Surviving Corporation
Common Stock or options, warrants or other securities of the Surviving Corporation, as the case may be, evidenced by such outstanding
certificate, as above provided.
Article V
Conditions
Section 5.1. Conditions to the Obligations
of Each Party. The respective obligation of each party hereto to effectuate the Reincorporation Merger is subject to satisfaction
of the following conditions:
(a) the holders of a majority of the
outstanding shares of Company Common Stock shall have adopted this Agreement in accordance with applicable law and the certificate
of incorporation and bylaws of the Company prior to the Effective Time; and
(b) any and all consents, approvals,
authorizations or permits, filings or notifications deemed in the sole discretion of the Company to be material to the consummation
of the Reincorporation Merger (“Required Consents”) shall have been obtained and shall be in full force and
effect, including, without limitation, (i) consents, registrations, approvals, findings of suitability, licenses, declarations,
notifications or filings required to be made, given or obtained under applicable laws, rules and regulations in connection with
this Agreement or the consummation of the Reincorporation Merger, and (ii) supplements, agreements, amendments, conveyances, instruments,
consents, approvals, authorizations and other documents to be executed and/or delivered by the Company in connection with any agreements
the Company or its affiliates have entered for the provision of debt financing; provided, however, that either of
the parties hereto may waive this condition (b), in its sole discretion to the extent permitted by law, with respect to any and
all Required Consents.
Article VI
Termination
Section 6.1. Termination. This Agreement
may be terminated and the Reincorporation Merger may be abandoned at any time prior to the Effective Time, whether before or after
the adoption of this Agreement by the holders of Company Common Stock referred to in Section 5.1, if the board of directors of
the Company determines for any reason that the consummation of the Reincorporation Merger would be inadvisable or not in the best
interests of the Company and its stockholders. In the event of the termination and abandonment of this Agreement, this Agreement
shall become null and void and have no effect, without any liability on the part of either the Company or NewCo, or any of their
respective stockholders, directors or officers.
Article VII
Miscellaneous and General
Section 7.1. Modification or Amendment.
Subject to the provisions of applicable laws, at any time prior to the Effective Time, the parties hereto may modify or amend this
Agreement; provided, however, that an amendment made subsequent to the adoption of this Agreement by the holders
of Company Common Stock shall not (a) alter or change the amount or kind of shares and/or rights to be received in exchange for
or on conversion of all or any of the shares of the Company, (b) alter or change any provision of the Articles of Incorporation
or the bylaws of the Surviving Corporation that will become effective immediately following the Reincorporation Merger other than
as provided herein or (c) alter or change any of the terms or conditions of this Agreement if such alteration or change would adversely
affect the holders of capital stock of either of the parties hereto.
Section 7.2. Counterparts. This Agreement
may be executed in any number of counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts
shall together constitute the same agreement.
Section 7.3. Governing Law. This Agreement
shall be deemed to be made in and in all respects shall be interpreted, construed and governed by and in accordance with the laws
of the State of Nevada, without regard to the conflicts of law principles thereof to the extent that such principles would direct
a matter to another jurisdiction.
Section 7.4. Entire Agreement. This Agreement
constitutes the entire agreement and supersedes all other prior agreements, understandings, representations and warranties both
written and oral, among the parties, with respect to the subject matter hereof.
Section 7.5. No Third Party Beneficiaries.
This Agreement is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder.
Section 7.6. Severability. The provisions
of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity
or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any person
or any circumstance, is determined by any court or other authority of competent jurisdiction to be invalid or unenforceable, (a)
a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable,
the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of
such provision to other persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity
or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.
Section 7.7. Headings. The headings herein
are for convenience of reference only, do not constitute part of this Agreement and shall not be deemed to limit or otherwise affect
any of the provisions hereof.
[Signature page follows]
|
THE COMPANY:
|
|
|
|
PREDICTIVE ONCOLOGY, INC.,
a Delaware corporation
|
|
|
|
By:
|
|
|
Name:
|
|
|
Its:
|
|
|
|
|
NEWCO:
|
|
|
|
POAI Merger Company Inc
.,
a Nevada corporation
|
|
|
|
By:
|
|
|
Name:
|
|
|
Its:
|
|
Signature Page to Agreement and Plan of Merger
EXHIBIT A
ARTICLES OF INCORPORATION
OF
POAI Merger Company Inc.
(see attached)
APPENDIX B
CERTIFICATE OF
AMENDED AND RESTATED ARTICLES OF INCORPORATION
OF
POAI
Merger Company Inc.
Pursuant to the provisions of Nevada Revised
Statutes 78.390 and 78.403, the undersigned officer of POAI Merger Company Inc., a Nevada corporation (the “Corporation”),
does hereby certify as follows:
A. The Agreement and Plan of Merger, dated
as of [●], 2020 by and between Predictive Oncology Inc., a Delaware corporation (“Parent”), and the Corporation
(the “Merger Agreement”) provides for the amendment and restatement of the Corporation’s articles of incorporation
as set forth below.
B. The Merger Agreement, and the amendment
and restatement of the Corporation’s articles of incorporation (including the change of the name of the Corporation) contemplated
thereby and as set forth below, have been duly approved by the board of directors and Parent, the sole stockholder of the Corporation,
which is sufficient for approval thereof. The board of directors and Parent have determined and declared such amendment and restatement
to be advisable, fair to and in the best interests of the Corporation.
C. This certificate sets forth the text
of the articles of incorporation of the Corporation, as amended and restated in their entirety to this date as follows:
AMENDED AND RESTATED ARTICLES OF INCORPORATION
OF PREDICTIVE ONCOLOGY INC.
ARTICLE I
NAME
The name of the Corporation is Predictive
Oncology Inc. (the “Corporation”).
ARTICLE II
REGISTERED OFFICE
The Corporation may, from time to time,
in the manner provided by law, change the registered agent and registered office within the State of Nevada. The Corporation may
also maintain an office or offices for the conduct of its business, either within or without the State of Nevada.
ARTICLE III
PURPOSE
The Corporation is formed for the purpose
of engaging in any lawful activity for which corporations may be organized under the laws of the State of Nevada.
ARTICLE IV
CAPITAL STOCK
(A) Authorized Stock. The total number
of shares of all stock which the Corporation shall have authority to issue is 120,000,000 shares, consisting of: (i) 100,000,000
shares of common stock, par value $.001 per share (the “Common Stock”) and (ii) 20,000,000 shares, $.001 par
value per share, designated as preferred stock (the “Preferred Stock”). All cross references in each subdivision
of this ARTICLE IV refer to other paragraphs in such subdivision unless otherwise indicated.
(B) Preferred Stock.
(1) Designation. The shares of Preferred
Stock are hereby authorized to be issued from time to time in one or more series, the shares of each series to have such voting
powers, full or limited, or no voting powers, and such designations, preferences and relative, participating, optional or other
special rights and qualifications, limitations or restrictions as are specified in the resolution or resolutions adopted by the
board of directors of the Corporation (the “Board of Directors”) providing for the issue thereof. Such Preferred
Stock may be convertible into, or exchangeable for, at the option of either the holder or the Corporation or upon the happening
of a specified event, shares of any other class or classes or any other series of the same or any other class or classes of capital
stock of the Corporation at such price or prices or at such rate or rates of exchange and with such adjustments as shall be stated
and expressed in these Articles of Incorporation, as amended from time to time (these “Articles of Incorporation”)
or in the resolution or resolutions adopted by the Board of Directors providing for the issue thereof.
(2) Authority Vested in the Board.
Authority is hereby expressly vested in the Board of Directors, subject to the provisions of this ARTICLE IV and to the limitations
prescribed by law, to authorize the issue from time to time of one or more series of Preferred Stock and, with respect to each
such series, to fix by resolution or resolutions adopted by the affirmative vote of a majority of the whole Board of Directors
providing for the issue of such series the voting powers, full or limited, if any, of the shares of such series and the designations,
preferences and relative, participating, optional or other special rights and the qualifications, limitations or restrictions thereof.
The authority of the Board of Directors with respect to each series shall include, but not be limited to, the determination of
the following:
(a) The designation of such series.
(b) The dividend rate of such series, the
conditions and dates upon which such dividends shall be payable, the relation which such dividends shall bear to the dividends
payable on any other class or classes or series of the Corporation’s capital stock, and whether such dividends shall be cumulative
or noncumulative.
(c) Whether the shares of such series shall
be subject to redemption by the Corporation at the option of either the Corporation or the holder or both or upon the happening
of a specified event and, if made subject to any such redemption, the times or events, prices and other terms and conditions of
such redemption.
(d) The terms and amount of any sinking
fund provided for the purchase or redemption of the shares of such series.
(e) Whether the shares of such series shall
be convertible into, or exchangeable for, at the option of either the holder or the Corporation or upon the happening of a specified
event, shares of any other class or classes or of any other series of the same or any other class or classes of the Corporation’s
capital stock, and, if provision is made for conversion or exchange, the times or events, prices, rates, adjustments and other
terms and conditions of such conversions or exchanges.
(f) The restrictions, if any, on the issue
or reissue of any additional Preferred Stock.
(g) The rights of the holders of the shares
of such series upon the voluntary or involuntary liquidation, dissolution or winding up of the Corporation.
(h) The provisions as to voting, optional
and/or other special rights and preferences, if any.
(3) Certificate. Before the Corporation
shall issue any shares of Preferred Stock of any series, a certificate of designation setting forth a copy of the resolution or
resolutions of the Board of Directors, and establishing the voting powers, if any, and the designations, preferences and relative,
participating, optional or other special rights, if any, and the qualifications, limitations or restrictions thereof, if any, relating
to the shares of Preferred Stock of such series, and the number of shares of Preferred Stock of such series authorized by the Board
of Directors to be issued, shall be made and signed by an officer of the Corporation and filed in the manner prescribed by the
Nevada Revised Statutes, as amended from time to time (the “NRS”).
(C) Common Stock.
(1) Voting Rights. The holders of Common
Stock will be entitled to notice of and to attend all meetings of the stockholders of the Corporation and shall be entitled to
one vote per share on all matters to be voted on by the Corporation’s stockholders.
(2) Dividends. Subject to all provisions
of this ARTICLE IV, including the rights of holders of any Preferred Stock having preference as to dividends and except as otherwise
provided by these Articles of Incorporation or the NRS, the holders of the Common Stock shall be entitled to receive dividends
when and as declared by the Board of Directors, out of any funds legally available for such purpose. When and as dividends are
declared thereon, whether payable in cash, property or securities of the Corporation, the holders of Common Stock will be entitled
to share, ratably according to the number of shares of Common Stock held by them, in such dividends.
(3) Liquidation Rights. In the event
of any liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, or any distribution of any
of its assets to any of its stockholders other than by dividends from funds legally available therefor, and other than payments
made upon redemptions or purchases of shares of the Corporation, after payment in full of the amount which the holders of Preferred
Stock are entitled to receive in such event, the holders of Common Stock shall be entitled to share, ratably according to the number
of shares of Common Stock held by them, in the remaining assets of the Corporation available for distribution to its stockholders.
ARTICLE V
BYLAWS
In furtherance and not in limitation of
the powers conferred by statute, the Board of Directors is expressly authorized to adopt, amend or repeal the bylaws of the Corporation
(as amended from time to time, the “Bylaws”). Elections of directors need not be by written ballot unless the
Bylaws shall so provide. Meetings of stockholders may be held within or without the State of Nevada, virtually and/or in person,
as the Bylaws provide. The books of the Corporation may be kept (subject to any provision contained in the statutes) outside the
State of Nevada at such place or places as may be designated from time to time by the Board of Directors or in the Bylaws.
ARTICLE VI
AMENDMENTS TO ARTICLES
The Corporation reserves the right to amend,
alter, change or repeal any provision contained in these Articles of Incorporation, in the manner now or hereafter prescribed by
statute, and all rights conferred upon stockholders herein are granted subject to this reservation.
ARTICLE VII
INDEMNIFICATION; EXCULPATION
(A) Indemnification. To the fullest
extent permitted under the NRS (including, without limitation, NRS 78.7502, NRS 78.751 and 78.752) and other applicable law, the
Corporation shall indemnify directors and officers of the Corporation in their respective capacities as such and in any and all
other capacities in which any of them serves at the request of the Corporation.
(B) Limitation on Liability.
The liability of directors and officers of the Corporation shall be eliminated or limited to the fullest extent permitted by the
NRS. If the NRS is amended to further eliminate or limit or authorize corporate action to further eliminate or limit the liability
of directors or officers, the liability of directors and officers of the Corporation shall be eliminated or limited to the fullest
extent permitted by the NRS, as so amended from time to time.
(C) Repeal and Conflicts. Any amendment
to or repeal of any provision or section of this ARTICLE VII shall be prospective only, and shall not apply to or have any effect
on the right or protection of, or the liability or alleged liability of, any director or officer of the Corporation existing prior
to or at the time of such amendment or repeal. In the event of any conflict between any provision or section of this ARTICLE VII
and any other article of the Articles of Incorporation, the terms and provisions of this ARTICLE VII shall control.
ARTICLE VIII
SPECIAL PROVISIONS REGARDING DISTRIBUTIONS
Notwithstanding anything to the contrary
in these Articles of Incorporation or the Bylaws, the Corporation is hereby specifically allowed to make any distribution that
otherwise would be prohibited by NRS 78.288(2)(b).
ARTICLE IX
Stockholder
rights
For the avoidance of doubt, no stockholder
of the Corporation shall have any preemptive rights, and no stockholder of the Corporation shall have any cumulative voting rights.
In Witness
Whereof, the undersigned has set his hand to these Articles of Incorporation on this [●] day of [●], 2020.
APPENDIX C
BYLAWS
OF
PREDICTIVE ONCOLOGY INC.
ARTICLE I
Offices, Corporate Seal
Section 1.01 Offices.
Predictive Oncology Inc. (the “Corporation”) shall have a registered office, a principal office and such
other offices as the board of directors of the Corporation (the “Board of Directors”) may determine.
Section 1.02 Corporate
Seal. There shall be no corporate seal.
ARTICLE II
Meetings of Stockholders
Section 2.01 Place
and Time of Meetings. Meetings of the stockholders may be held at such place, on such date and at such time as may be designated
by the Board of Directors.
Section 2.02 Special
Meetings. The annual meeting of the stockholders of the Corporation shall be held at such place, virtually and/or in person
in accordance with applicable law, on such date and at such time as designated by the Board of Directors. The purpose of this meeting
shall be for the election of directors and for the transaction of such other business as may properly come before the meeting.
Except as otherwise restricted by the articles of incorporation of the Corporation (as amended or amended and restated from time
to time, the “Articles of Incorporation”) or applicable law, the Board of Directors may postpone, reschedule
or cancel any annual meeting of stockholders.
Section 2.03 Special
Meetings. Special meetings of the stockholders for any purpose or purposes shall be called by the Secretary at the written
request of a majority of the total number of directors, by the Chairman of the Board, by the Chief Executive Officer or by the
stockholders owning a majority of the shares outstanding and entitled to vote. Such request shall state the purpose or purposes
of the proposed meeting. Business transacted at any special meeting shall be limited to the purposes stated in the notice. Except
as otherwise restricted by the Articles of Incorporation or applicable law, the Board of Directors may postpone, reschedule or
cancel any special meeting of stockholders.
Section 2.04 Quorum;
Adjourned Meetings. The holders of a majority of the shares outstanding and entitled to vote present in person or by proxy
(regardless of whether the proxy has authority to vote on all matters) shall constitute a quorum for the transaction of business
at any annual or special meeting. If a quorum is not present at a meeting, those present shall adjourn to such day as they shall
agree upon by majority vote. Notice of any adjourned meeting need not be given if the time and place thereof are announced at the
meeting at which the adjournment is taken. However, if a new record date is fixed for the adjourned meeting, notice of the adjourned
meeting must be given to each stockholder of record as of the new record date. At adjourned meetings at which a quorum is present,
any business may be transacted which might have been transacted at the meeting as originally noticed. If a quorum is present, the
stockholders may continue to transact business until adjournment notwithstanding the withdrawal of enough stockholders to leave
less than a quorum.
Section 2.05 Organization.
At each meeting of the stockholders, the Chairman of the Board or in his or her absence the Chief Executive Officer or in his or
her absence the chairman chosen by a majority of the voting power of the stockholders present in person or proxy shall act as chairman;
and the Secretary of the Corporation, or in his or her absence an Assistant Secretary, or in his or her absence any person whom
the chairman of the meeting shall appoint, shall act as secretary of the meeting.
Section 2.06 Voting.
Each stockholder of the Corporation entitled to vote at a meeting of stockholders shall be entitled to one vote in person or by
proxy for each share of stock having voting rights held by such stockholder and registered in his, her or its name on the books
of the Corporation. Upon the request of any stockholder present in person or by proxy at any meeting of the stockholders and entitled
to vote at such meeting, or if directed by the chairman of the meeting in his or her discretion, the vote on any question before
a meeting or the election of directors shall be by written ballot. All questions at a meeting shall be decided by a majority vote
of the number of shares entitled to vote represented at the meeting at the time of the vote except where otherwise required by
statute, the Articles of Incorporation or these Amended and Restated Bylaws (as amended or amended and restated from time to time,
the “Bylaws”). For the election of directors, the persons receiving the largest number of votes cast
(up to and including the number of directors to be elected) shall be directors.
Section 2.07 Inspectors
of Election. At each meeting of the stockholders, the chairman of such meeting may appoint two inspectors of election.
Each inspector of election so appointed shall first subscribe an oath or affirmation to execute the duties of an inspector of election
at such meeting with strict impartiality and according to the best of his or her ability. Such inspectors of election, if any,
may (a) ascertain the number of shares outstanding and the voting power of each; (b) determine the number of shares represented
at a meeting and the validity of the proxies or ballots; (c) count all votes and ballots; (d) determine any challenges made to
any determination made by the inspectors; (e) certify in a report in writing to the secretary of such meeting the determination
of the number of shares represented at the meeting and the results of all votes and ballots. An inspector of election need not
be a stockholder of the Corporation, and any officer or employee of the Corporation may be an inspector of election on any question
other than a vote for or against his or her election to any position with the Corporation or on any other question in which he
or she may be directly interested.
Section 2.08 Notices
of Meetings and Consents. Except as otherwise provided by the Articles of Incorporation or by the Nevada Revised Statutes
(as amended from time to time, the “NRS”), a written notice of each annual and special meeting of stockholders
shall be given not less than 10 nor more than 60 days before the date of such meeting to each stockholder of record of the Corporation
entitled to vote at such meeting by delivering such notice of meeting to such stockholder personally or depositing the same in
the United States mail, postage prepaid, directed to him at the post office address shown upon the records of the Corporation.
Service of notice is complete upon mailing. Every notice of a meeting of stockholders shall state the place, date and hour of the
meeting, the means of electronic communication, if any, by which the stockholder or the proxies thereof shall be deemed to be present
and vote and, in the case of a special meeting the purpose or purposes for which the meeting is called. The notice shall be delivered
in accordance with, and shall contain or be accompanied by such additional information as may be required by, the NRS, including,
without limitation, NRS 78.379, 92A.120 or 92A.410
Section 2.09 Proxies.
Each stockholder entitled to vote at a meeting of stockholders may authorize a proxy to represent him at the meeting by an instrument
executed in writing. Each such proxy shall be valid until its expiration or revocation in a manner permitted by the laws of the
State of Nevada. A proxy may be irrevocable if it states that it is irrevocable and, if, and only as long as, it is coupled with
an interest sufficient to support an irrevocable power. Subject to the above, any proxy may be revoked if an instrument or transmission
revoking it or a properly created proxy bearing a later date is filed with or transmitted to the Secretary or another person appointed
by the Corporation to count the votes of stockholders and determine the validity of proxies and ballots, or, in the case of a meeting
of stockholders, the stockholder revokes the proxy by attending the meeting and voting the stockholder’s shares in person,
in which case, any vote cast by the person or persons designated by the stockholder to act as a proxy or proxies must be disregarded
by the Corporation when the votes are counted.
Section 2.10 Waiver
of Notice. Notice of any annual or special meeting may be waived either before, at or after such meeting in writing signed
or by transmission of an electronic record by the person or persons entitled to the notice. Attendance of a person at a meeting
shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting
at the beginning of the meeting to the transacting of any business because the meeting is not lawfully called or convened.
Section 2.11 Written
Action. Any action that may be taken at a meeting of the stockholders may be taken without a meeting, without prior notice
and without a vote, if a consent in writing, setting forth the actions so taken, shall be signed by the holders of outstanding
stock having not less than the minimum number of votes that would be required to authorize or take such action at a meeting at
which all shares entitled to vote thereon were present and voted.
Section 2.12 Order of Business.
(a) Special
Meetings of Stockholders. At any annual or special meeting of the stockholders, only such business shall be conducted or considered
(including, in the case of an annual meeting, nominations of persons for election to the Board of Directors), as shall have been
properly brought before the meeting. For such business to be properly brought before an annual meeting, nominations and proposals
of other business must be: (a) specified in the Corporation’s notice of meeting (or any supplement thereto) given by or at
the direction of the Board of Directors, (b) otherwise properly brought before such meeting, by or at the direction of the Board
of Directors or (c) otherwise properly requested to be brought before such meeting by a stockholder of the Corporation in accordance
with these Bylaws.
(b) General.
Except as otherwise provided by law, the Articles of Incorporation or these Bylaws, the chairman of any annual or special meeting
shall have the power to determine whether a nomination or any other business proposed to be brought before the meeting was made
or proposed, as the case may be, in accordance with these Bylaws and, if any proposed nomination or other business is not in compliance
with these Bylaws, to declare that no action shall be taken on such nomination or other proposal and such nomination or other proposal
shall be disregarded.
Section 2.13 Notice of
Stockholder Business and Nominations.
(a) Timing
Requirements. With respect to any nominations or any other business to be brought before an annual meeting, a stockholder’s
notice shall be considered timely if it is delivered to the Secretary at the principal executive offices of the Corporation not
earlier than the close of business on the one hundred twentieth (120th) day and not later than the close of business on the ninetieth
(90th) day prior to the first anniversary of the preceding year’s annual meeting; provided, however, that in
the event that the date of the special meeting is more than thirty (30) days before or more than sixty (60) days after such anniversary
date, notice by the stockholder must be so delivered not earlier than the close of business on the one hundred twentieth (120th)
day prior to the date of such annual meeting and not later than the close of business on the later of the ninetieth (90th) day
prior to the date of such annual meeting or, if the first public announcement of the date of such annual meeting is less than one
hundred (100) days prior to the date of such annual meeting, the tenth (10th) day following the day on which public announcement
of the date of such meeting is first made by the Corporation.
With respect to any business to be properly requested
to be brought before a special meeting, a stockholder’s notice shall be considered timely if it is delivered to the Secretary
at the principal executive offices of the Corporation not earlier than the close of business on the one hundred twentieth (120th)
day and not later than the close of business on the later of the ninetieth (90th) day prior to the date of such special meeting
or, if the first public announcement of the date of such special meeting is less than one hundred (100) days prior to the date
of such special meeting, the tenth (10th) day following the day on which public announcement is first made by the Corporation of
the date of the special meeting.
Except as required by the NRS or Section 8.01
of these Bylaws, in no event shall any adjournment or postponement of an annual or special meeting of stockholders, as applicable,
or the public announcement thereof, commence a new time period for the giving of a stockholder’s notice as described above.
(b) Disclosure
Requirements. To be in proper form, a stockholder’s notice (whether given pursuant to Section 2.13(A) or 2.13(B) of these
Bylaws) to the Secretary must include the following, as applicable: as to the stockholder giving the notice and the beneficial
owner, if any, on whose behalf the nomination or proposal is made: (i) the name and address of such stockholder, as they appear
on the Corporation’s books and of such beneficial owner or Control Person, if any, (ii) the number of shares of the Corporation
which are, directly or indirectly, owned beneficially and of record by such stockholder and such beneficial owner or Control Person,
if any (iii) a representation that the stockholder intends to appear at the meeting in person or by proxy to submit the business
specified in such notice, (iv) if the notice relates to any business other than a nomination of director(s), a brief description
of the business desired to be brought before the meeting, including the complete text of any resolutions proposed for consideration,
and the reasons for conducting such business at the meeting, (v) any direct or indirect interest personal or other material interest
of the stockholder in the business to be submitted, (vi) a description of any agreement, arrangement or understanding (including
any derivative or short positions, profit interests, options, hedging transactions, and borrowed or loaned shares) that has been
entered into as of the date of the stockholder’s notice by, or on behalf of, such stockholder or beneficial owner and by
any Control Person or any other person acting in concert with any of the foregoing, the effect or intent of which is to mitigate
loss, manage risk or benefit from changes in the share price of any class of the Corporation’s stock, or maintain, increase
or decrease the voting power of the stockholder or beneficial owner with respect to shares of stock of the Corporation, and a representation
that the stockholder will notify the Corporation in writing within five business days after the record date for such meeting of
any such agreement, arrangement or understanding in effect as of the record date for the meeting, (vii) a representation whether
the stockholder or the beneficial owner, if any, and any Control Person will engage in a solicitation with respect to the nomination
or business and, if so, the name of each participant (as defined in Item 4 of Schedule 14A under the Securities Exchange Act of
1934) in such solicitation and whether such person intends or is part of a group which intends to deliver a proxy statement and/or
form of proxy to holders of at least the percentage of the Corporation’s outstanding stock required to approve or adopt the
business to be proposed (in person or by proxy) by the stockholder and (viii) any other information relating to such stockholder,
beneficial owner or Control Person, if any, that would be required to be disclosed in a proxy statement and form or proxy or other
filings required to be made in connection with solicitations of proxies for, as applicable, the proposal and/or for the election
of directors in a contested election pursuant to Section 14 of the Securities Exchange Act of 1934 and the rules and regulations
promulgated thereunder. For purposes of this Section 2.13 a “Control Person” shall be a director, executive,
managing member or control person of such stockholder giving the notice or, if the notice is given on behalf of a beneficial owner
on whose behalf the nomination is made or the business is proposed, as to such beneficial owner.
Nothing in these Bylaws shall be deemed to affect
any rights of stockholders to request inclusion of proposals in the Corporation’s proxy statement pursuant to Rule 14a-8
under the Securities Exchange Act of 1934.
ARTICLE III
Board of Directors
Section 3.01 General
Powers. The business of the Corporation shall be managed by the Board of Directors.
Section 3.02 Number,
Qualification and Term of Office. The exact number of directors shall be determined from time to time solely by resolution
adopted by the affirmative vote of a majority of the entire Board of Directors. The Board of Directors shall be divided into three
classes, as nearly equal in number as possible, designated: Class I, Class II and Class III (each, a “Class”). In the
case of any increase or decrease, from time to time, in the number of directors, the number of directors in each class shall be
apportioned as nearly equal as possible. Except as otherwise provided in the certificate of incorporation, each director shall
serve for a term ending on the date of the third annual meeting of the Corporation’s stockholders following the special meeting
at which such director was elected; provided, however, that each director initially appointed to Class I shall serve for an initial
term expiring at the Corporation’s first annual meeting of stockholders following the effectiveness of this provision; each
director initially appointed to Class II shall serve for the initial term expiring at the Corporation’s second annual meeting
of stockholders following the effectiveness of this provision; and each director initially appointed to Class III shall serve for
an initial term expiring at the Corporation’s third annual meeting of stockholders following the effectiveness of this provision;
provided further, that the term of each director shall continue until the election and qualification of a successor and be subject
to such director’s earlier death, resignation or removal. Directors need not be stockholders.
Section 3.03 Special
Meeting. As soon as practicable after each election of directors, the Board of Directors shall meet at the registered office
of the Corporation, or at such other place previously designated by the Board of Directors, for the purpose of electing the officers
of the Corporation and for the transaction of such other business as may come before the meeting.
Section 3.04 Regular
Meetings. Regular meetings of the Board of Directors shall be held from time to time at such time and place as may be fixed
by resolution adopted by a majority of the total number of directors.
Section 3.05 Special Meetings.
Special meetings of the Board of Directors may be called by the Chairman of the Board, the Chief Executive Officer, or by any two
of the directors and shall be held from time to time at such time and place as may be designated in the notice of such meeting.
Section 3.06 Notice
of Meetings. No notice need be given of any annual or regular meeting of the Board of Directors. Notice of each special
meeting of the Board of Directors shall be given by the Secretary who shall give at least twenty-four hours’ notice thereof
to each director by mail, telephone, telegram, electronic transmission including email, or in person. Notice shall be effective
upon receipt.
Section 3.07 Waiver
of Notice. Notice of any meeting of the Board of Directors may be waived either before, at, or after such meeting in writing
signed by each director. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the
person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business
because the meeting is not lawfully called or convened.
Section 3.08 Quorum
and Voting. A majority of the directors then in office shall constitute a quorum for the transaction of business. The vote
of a majority of the directors present at a meeting at which a quorum is present shall be the act of the Board of Directors unless
these Bylaws, the Articles of Incorporation or the NRS require a greater number.
Section 3.09 Vacancies.
Unless otherwise provided by applicable law or the Articles of Incorporation, (a) the Board of Directors may increase the authorized
number of Directors and (b) any newly created directorships resulting from an increase in the authorized number of Directors and
vacancies occurring in the Board for any cause, may be (i) filled by the affirmative votes of a majority of the remaining members
of the Board, although less than a quorum, (ii) filled by a sole remaining Director or (iii) elected by a plurality of the votes
cast at an annual or special meeting of the Shareholders. A Director so elected shall be elected to hold office until the expiration
of the term of office of the Director whom he or she has replaced or until a successor is elected and qualified, or until the Director’s
earlier death, resignation or removal, subject in all cases to any applicable requirements in the Articles of Incorporation.
Section 3.10 Removal.
Any director may be removed from office at any special meeting of the stockholders either with or without cause by the vote of
the holders of not less than two-thirds of the voting power of the issued and outstanding stock entitled to vote generally in the
election of directors, excluding stock entitled to vote only upon the happening of a fact or event unless such fact or event shall
have occurred. If the entire Board of Directors or any one or more directors be so removed, new directors may be elected at the
same meeting.
Section 3.11 Committees
of Directors. The Board of Directors may, by resolution adopted by a majority of the total number of directors, designate
one or more committees, each to consist of one or more of the directors of the Corporation, which, to the extent provided in the
resolution, may exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation.
The Board of Directors may designate one or more directors as alternate members of any committee, who may replace any absent or
disqualified member at any meeting of the committee. In the absence or disqualification of any member of such committee or committees,
the member or members thereof present at any meeting and not disqualified from voting, whether or not constituting a quorum, may
unanimously appoint another member of the Board of Directors to act at the meeting in the place of any such absent or disqualified
member. Such committee or committees shall have such name or names as may be determined by the resolution adopted by the directors.
The committees shall keep regular minutes of their proceedings and report the same to the Board of Directors when required. Unless
otherwise provided for in a resolution of the Board of Directors designating a committee pursuant to this Section 3.11: (i) a majority
of the authorized number of members of such committee shall constitute a quorum for the transaction of business of such committee
and (ii) the vote of a majority of the members of such committee present at a meeting of such committee at which a quorum is present
shall be the act of such committee except where otherwise required by these Bylaws or the charter of such committee.
Section 3.12 Written
Action. Any action required or permitted to be taken at a meeting of the Board of Directors or any committee thereof may
be taken without a meeting if, before or after the action, all directors or committee members consent thereto in writing. The written
consent may be signed manually or electronically (or by any other means then permitted under the NRS), and may be so signed in
counterparts, including, without limitation, facsimile or email counterparts, and the written consent shall be filed with the minutes
of proceedings of the Board of Directors or committee.
Section 3.13 Compensation.
Directors who are not salaried officers of the Corporation may receive a fixed sum per meeting attended or a fixed annual sum,
or both, and such other forms of reasonable compensation as may be determined by resolution of the Board of Directors. All directors
shall receive their expenses, if any, of attendance at meetings of the Board of Directors or any committee thereof. Any director
may serve the Corporation in any other capacity and receive proper compensation therefor. If the Board of Directors establishes
the compensation of directors pursuant to this Section 3.13, such compensation is presumed to be fair to the Corporation unless
proven unfair by a preponderance of the evidence.
Section 3.14 Conference
Communications. Directors may participate in any meeting of the Board of Directors, or of any duly constituted committee
thereof, by means of any conference telephone, electronic communications, videoconferencing, teleconferencing or other comparable
communication technique or technology permitted under the NRS, including, without limitation, a telephone conference or similar
method of communication whereby all persons participating in the meeting can hear and communicate to each other. If any such means
are utilized, the Corporation shall, to the extent required under the NRS, implement reasonable measures to (a) verify the identity
of each person participating through such means as a director or member of the committee, as the case may be, and (b) provide the
directors or members of the committee a reasonable opportunity to participate in the meeting and to vote on matters submitted to
the directors or members of the committee, including an opportunity to communicate, and to read or hear the proceedings of the
meeting in a substantially concurrent manner with such proceedings. For the purposes of establishing a quorum and taking any action
at the meeting, such directors participating pursuant to this Section 3.14 shall be deemed present in person at the meeting.
ARTICLE IV
Officers
Section 4.01 Number.
The officers of the Corporation shall consist of a Chief Executive Officer, a Chief Financial Officer, a Secretary or the equivalents
of such officers. The officers of the Corporation may also consist of one or more Presidents, Vice Presidents and any other officers
and agents as the Board of Directors, by a majority vote of the total number of directors, may designate. Any person may hold two
or more offices.
Section 4.02 Election,
Term of Office, and Qualifications. At each annual meeting of the Board of Directors all officers shall be elected. Such
officers shall hold office until the next annual meeting of the directors or until their successors are elected and qualified,
or until their earlier resignation or removal, or until such office is eliminated by a vote of the majority of all directors. Unless
they have resigned or been removed, officers who may be directors shall hold office until the election and qualification of their
successors, notwithstanding an earlier termination of their directorship.
Section 4.03 Removal
and Vacancies. Any officer may be removed from his or her office by a majority vote of the total number of directors with
or without cause. A vacancy among the officers by death, resignation, removal, or otherwise shall be filled for the unexpired term
by the Board of Directors.
Section 4.04 Chairman
of the Board. The Chairman of the Board, if one is elected, shall preside at all meetings of the stockholders and directors
and shall have such other duties as may be prescribed, from time to time, by the Board of Directors.
Section 4.05 Chief
Executive Officer. The Chief Executive Officer of the Corporation shall have general supervision over the business of the
Corporation, subject to the control of the Board and of any duly authorized committee of the Board. The Chief Executive Officer
may sign and execute in the name of the Corporation, deeds, mortgages, bonds, contracts and other instruments, unless (a) the signing
and execution thereof is expressly delegated by resolution of the Board or by these Bylaws to some other officer or agent of the
Corporation or (b) applicable law provides otherwise. In general, the Chief Executive Officer shall perform all duties incident
to the office of Chief Executive Officer of a corporation and such other duties as may from time to time be assigned to the Chief
Executive Officer by resolution of the Board. Unless otherwise appointed by the Board, the Chief Executive Officer shall be the
Chief Executive Officer.
Section 4.06 Chief Financial
Officer. The Chief Financial Officer (a/k/a the Treasurer) shall keep accurate accounts of all moneys of the Corporation
received or disbursed. The Chief Financial Officer shall deposit all moneys, drafts and checks in the name of and to the credit
of the Corporation in such banks and depositories as a majority of the whole Board of Directors shall from time to time designate.
The Chief Financial Officer shall have power to endorse for deposit all notes, checks and drafts received by the Corporation. The
Chief Financial Officer shall disburse the funds of the Corporation as ordered by the directors, making proper vouchers therefor.
The Chief Financial Officer shall render to the Chief Executive Officer and the Board of Directors whenever required an account
of all his or her transactions as Chief Financial Officer and of the financial condition of the Corporation and shall perform such
other duties as may from time to time be prescribed by the Board of Directors or by the Chief Executive Officer.
Section 4.07 Secretary.
The Secretary shall be secretary of and shall attend all meetings of the stockholders and Board of Directors and shall record all
proceedings of such meetings in the minute book of the Corporation. The Secretary shall give proper notice of meetings of stockholders
and the Board of Directors. The Secretary shall perform such other duties as may from time to time be prescribed by the Board of
Directors or by the Chief Executive Officer.
Section 4.08 Duties
of other Officers. The duties of such other officers and agents as the Board of Directors may designate shall be set forth
in the resolution creating such office or by subsequent resolution.
Section 4.07 Compensation.
The officers of the Corporation shall receive such compensation for their services as may be determined from time to time by resolution
of the Board of Directors or by one or more committees to the extent so authorized from time to time by the Board of Directors.
ARTICLE V
Shares and Their Transfer
Section 5.01 Shares
of Stock. The shares of stock of the Corporation shall be represented by a certificate, provided that the Board of Directors
may provide by resolution or resolutions that some or all of any or all classes or series of the stock of the Corporation shall
be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is
surrendered to the Corporation. Notwithstanding the adoption of any such resolution providing for uncertificated shares, every
holder of stock of the Corporation theretofore represented by certificates and, upon request, every holder of uncertificated shares,
shall be entitled to a certificate, to be in such form as shall be prescribed by the Board of Directors, certifying the number
of shares in the Corporation owned by such holder. The certificates for such shares shall be numbered in the order in which they
shall be issued and shall be signed in the name of the Corporation by the Chairman of the Board, the Chief Executive Officer or
a Vice President, and by the Chief Financial Officer or an Assistant Chief Financial Officer, or the Secretary or an Assistant
Secretary. Every certificate surrendered to the Corporation for exchange or transfer shall be cancelled, and no new certificate
or certificates shall be issued in exchange for any existing certificate until such certificate shall have been so cancelled, except
in cases provided for in Section 5.05.
Section 5.02 Issuance
of Stock. The Board of Directors is authorized to cause to be issued stock of the Corporation up to the full amount authorized
by the Articles of Incorporation in such amounts and for such consideration as may be determined by the Board of Directors. Treasury
shares may be disposed of by the Corporation for such consideration as may be fixed by the Board of Directors.
Section 5.03 Transfer
Agent. The Corporation may from time to time maintain one or more transfer offices or agents and registry offices or agents
at such place(s) as may be determined from time to time by the Board of Directors.
Section 5.04 Transfer
of Stock. Transfer of stock on the books of the Corporation may be authorized only by the record holder of such stock,
the holder’s legal representative or the holder’s attorney lawfully constituted in writing and, in the case of stock
represented by a certificate or certificates, upon surrender of the certificate or the certificates for such stock, and, in the
case of uncertificated stock, upon receipt of proper transfer instructions and compliance with appropriate procedures for transferring
stock in uncertificated form (in each case, with such proof of the authenticity of signature as the Corporation or its transfer
agent may reasonably require). The Corporation may treat as the absolute owner of stock of the Corporation the person or persons
in whose name stock is registered on the books of the Corporation. The Board of Directors may from time to time establish rules
and regulations governing the issuance, transfer and registration of shares of stock of the Corporation.
Section 5.05 Loss
of Certificates. Any stockholder claiming a certificate for stock to be lost, stolen, mutilated or destroyed shall make
an affidavit of that fact in such form as the Board of Directors may require and shall, if the Board of Directors so requires,
give the Corporation a bond of indemnity in form, in an amount, and with one or more sureties satisfactory to the Board of Directors,
to indemnify the Corporation against any claims which may be made against it on account of the alleged loss, theft or destruction
of the certificate or issuance of such new certificate. The Corporation may then issue (a) a new certificate or certificates of
stock or (b) uncertificated shares, for the same number of shares represented by the certificate claimed to have been lost, stolen,
mutilated or destroyed.
Section 5.06 Facsimile
Signatures. Whenever any certificate is countersigned by a transfer agent or by a registrar other than the Corporation
or its employee, then the signatures of the officers or agents of the Corporation may be a facsimile. In case any officer, transfer
agent or registrar who has signed or whose facsimile signature has been placed on any such certificate shall cease to be such officer,
transfer agent or registrar before such certificate is issued, it may be issued by the Corporation as though the person who signed
such certificate or whose facsimile signature or signatures had been placed thereon were such officer, transfer agent or registrar
at the date of issue.
ARTICLE VI
Books and Records, Audit, Fiscal Year
Section 6.01 Books
and Records. The Board of Directors of the Corporation shall cause to be kept: (a) a share ledger which shall be a charge
of an officer designated by the Board of Directors; (b) records of all proceedings of stockholders and directors; and (c) such
other records and books of account as shall be necessary and appropriate to the conduct of the corporate business.
Section 6.02 Audit.
The Board of Directors shall cause the records and books of account of the Corporation to be audited at least once in each fiscal
year and at such other times as it may deem necessary or appropriate.
Section 6.03 Annual
List. The Board of Directors shall cause to be filed with the Nevada Secretary of State in each year the annual list required
by law.
Section 6.04 Fiscal
Year. The fiscal year of the Corporation shall end on December 31 of each year.
ARTICLE VII
Indemnification; Expenses
Section 7.01 Indemnification.
The Corporation shall indemnify and hold harmless, and the Board of Directors may authorize the purchase and maintenance of insurance
or make other financial arrangements for the purpose of such indemnification, any person who was or is a party or is threatened
to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative
or investigative, in such manner, under such circumstances and to the fullest extent permitted by the Articles of Incorporation
and the NRS.
Section 7.02 Payment of Expenses.
In addition to any other rights of indemnification permitted by the laws of the State of Nevada or as may be provided for by the
Corporation in the Articles of Incorporation, these Bylaws or by agreement, the expenses of directors and officers incurred in
defending any threatened, pending or completed action, suit or proceeding (including, without limitation, an action, suit or proceeding
by or in the right of the Corporation), whether civil, criminal, administrative or investigative, involving alleged acts or omissions
of such director or officer in his or her capacity as a director or officer of the Corporation, or while serving in any capacity
at the request of the Corporation as a director, officer, employee, agent, member, manager, managing member, partner or fiduciary
of, or in any other capacity for, another corporation, limited liability company, partnership, joint venture, trust or other enterprise,
shall be paid by the Corporation or through insurance purchased and maintained by the Corporation or through other financial arrangements
made by the Corporation, as they are incurred and in advance of the final disposition of the action, suit or proceeding, upon receipt
of an undertaking by or on behalf of the director or officer to repay the amount if it is ultimately determined by a court of competent
jurisdiction that he or she is not entitled to be indemnified by the Corporation. To the extent that an officer or director is
successful on the merits or otherwise in defense of any such action, suit or proceeding, or in the defense of any claim, issue
or matter therein, the Corporation shall indemnify him or her against expenses, including attorneys’ fees, actually and reasonably
incurred by him or her in connection with the defense.
Section 7.03 Amendment. No amendment
to or repeal of this ARTICLE VII approved by the directors or stockholders of the Corporation shall apply to or have any effect
on the right or protection of any director or officer of the Corporation existing prior to such amendment or repeal.
ARTICLE VIII
Miscellaneous
Section 8.01 Fixing Date
for Determination of Stockholders of Record.
(a) In order
that the Corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment
thereof, or to express consent to corporate action in writing without a meeting, or entitled to receive payment of any dividend
or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange
of stock or for the purpose of any other lawful action, the Board of Directors may fix, in advance, a record date, which shall
not be more than 60 nor less than 10 days before the date of such meeting, nor more than 60 days prior to any other action.
(b) If no
record date is fixed:
(1) The record
date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business
on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding
the day on which the meeting is held.
(2) The record
date for determining stockholders entitled to express consent to corporate action in writing without a meeting, when no prior action
by the Board of Directors is necessary, shall be the day on which the first written consent is expressed.
(3) The record
date for determining stockholders for any other purpose shall be at the close of business on the day on which the Board of Directors
adopts the resolution relating thereto.
(c) A determination
of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting
or to any postponement of any meeting of stockholders to a date not more than 60 days after the record date; provided, that the
Board of Directors may fix a new record date for the adjourned meeting and must fix a new record date if the meeting is adjourned
to a date more than 60 days later than the date set forth the original meeting.
Section 8.02 Periods
of Time. During any period of time prescribed by these Bylaws, the date from which the designated
period of time begins to run shall not be included, and the last day of the period so computed shall be included.
Section 8.03 Voting
Securities Held by the Corporation. Unless otherwise ordered by the Board of Directors, the
Chief Executive Officer shall have full power and authority on behalf of the Corporation (a) to attend, to act and to vote at any
meeting of security holders or owners of other entities in which the Corporation may hold securities or ownership interests; (b)
to execute any proxy for such meeting on behalf of the Corporation; or (c) to execute a written action in lieu of a meeting of
such other entity on behalf of the Corporation. At such meeting, by such proxy or by such writing in lieu of meeting, the Chief
Executive Officer shall possess and may exercise any and all rights and powers incident to the ownership of such securities or
ownership interests that the Corporation might have possessed and exercised if it had been present. The Board of Directors may,
from time to time, confer like powers upon any other person or persons.
Section 8.04 Purchase
and Sale of Securities. Unless otherwise ordered by the Board of Directors, the Chief Executive
Officer shall have power and authority on behalf of the Corporation to purchase, sell, transfer or encumber any and all securities
or ownership interests of any other entity owned by the Corporation and may execute and deliver such documents as may be necessary
to effectuate such purchase, sale, transfer or encumbrance. The Board of Directors may, from time to time, confer like powers upon
any other person or persons.
ARTICLE IX
Amendments
Section 9.01 Amendments.
These Bylaws may be amended, altered or repealed by a vote of the majority of the total number of directors or of the stockholders
at any meeting upon proper notice.
ARTICLE X
General
Section 10.01 Forum
for Adjudication of Disputes. To the fullest extent permitted by law, and unless the Corporation consents in writing to
the selection of an alternative forum, the Eighth Judicial District Court of Clark County, Nevada, shall be the sole and exclusive
forum for any actions, suits or proceedings, whether civil, administrative or investigative or that assert any claim or counterclaim
(a) brought in the name or right of the Corporation or on its behalf, (b) asserting a claim for breach of any fiduciary duty owed
by any director, officer, employee or agent of the Corporation to the Corporation or the Corporation’s stockholders, (c)
arising or asserting a claim arising pursuant to any provision of NRS Chapters 78 or 92A or any provision of the Articles of Incorporation
or these Bylaws or (d) asserting a claim governed by the internal affairs doctrine. In the event that the Eighth Judicial District
Court of Clark County, Nevada does not have jurisdiction over any such action, suit or proceeding, then any other state district
court located in the State of Nevada shall be the sole and exclusive forum therefor and in the event that no state district court
in the State of Nevada has jurisdiction over any such action, suit or proceeding, then a federal court located within the State
of Nevada shall be the sole and exclusive forum therefor. Any person or entity purchasing or otherwise acquiring any interest in
shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Section 10.01.
Section 10.02 Application
of These Bylaws. In the event that any provisions of these Bylaws are or may be in conflict with any law of the United
States, of the State of Nevada, or of any governmental body or power having jurisdiction over this Corporation, or over the subject
matter to which such provision of these Bylaws applies, or may apply, such provision of these Bylaws shall be inoperative to the
extent only that the operation thereof conflicts with such law, and shall in all other respects be in full force and effect.
Section 10.03 Invalid
Provisions. If any part of these Bylaws is held invalid or inoperative for any reason, the remaining parts, so far as possible
and reasonable, shall be valid and operative.
These Bylaws are hereby adopted by the Corporation
as of _______________, 2020.
C-11
Predictive Oncology (NASDAQ:POAI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Predictive Oncology (NASDAQ:POAI)
Historical Stock Chart
From Sep 2023 to Sep 2024