Renovaro (RENB) signed a binding letter of intent to acquire Predictive Oncology (POAI), the companies said Monday.

Under the terms of the agreement, Predictive Oncology will merge into Renovaro in exchange for a newly created series of Renovaro preferred stock, Predictive Oncology said.

The company said the parties are looking to enter definitive documentation for the merger by no later than Feb. 28.

Renovaro shares were up 12% while POAI shares were due off halt at 9:50 am ET.

Price: 1.21, Change: +0.28, Percent Change: +30.13