** Shares of biotech company Renovaro up as much as 38.2% to $1.28 after announcing plans to acquire cancer therapy developer Predictive Oncology in an all-stock transaction

** Shares of Predictive Oncology surged as much as 58% to $1.90

** Both companies entered into a letter of intent for POAI to merge into RENB in exchange for a newly created preferred stock

** Each preferred stock will be issued to POAI shareholders for their existing share, according to the deal terms

** Deal also states that preferred stock is redeemable for $3 per share after 18 months, or can be converted to Renovaro common stock if RENB trades above $4.50 per share for 30 consecutive trading days

** Both companies agreed to enter into definitive documentation for the merger by Feb. 28, 2025, with deal being subject to the fundraising of $15 mln by Renovaro and formal approval by POAI shareholders

** POAI had announced its intent to explore strategic alternatives including a sale on Nov. 13

** RENB and POAI stock fell ~73% and 75%, respectively, last year

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))