11:18 AM EDT, 08/16/2024 (MT Newswires) -- Personalis ( PSNL ) was surging in Friday morning trade, recently climbing almost 20%, after saying Tempus AI ( TEM ) would invest around $36 million into the genomic testing company as part of an expanded commercial partnership between the health care technology firms.

Under terms of the new, two-year agreement, Tempus will exercise its existing warrants to buy 9.2 million Personalis ( PSNL ) shares at $2 each and will also purchase another 3.5 million shares for $5.07 apiece, matching Thursday's closing price for the stock. Once the stock transactions close, Tempus will own roughly 19.3% of Personalis' ( PSNL ) outstanding shares, the companies said.

Personalis ( PSNL ) and Tempus initially disclosed plans in November 2023 to collaborate on bringing ultra-sensitive minimal residual disease testing to market, with those efforts starting earlier this summer at the American Society of Clinical Oncology annual meeting. The deal disclosed Friday also calls on Tempus to continue ramping up its commercialization activities while Personalis ( PSNL ) will increase the number of patient samples it accepts over the next two years.

Tempus shares were climbing more than 8% in mid-morning trade on Friday.

Price: 4.46, Change: -0.20, Percent Change: -4.29