NetScientific PLC (AIM:NSCI) said its portfolio company, Glycotest, has launched a fundraising program to raise up to $1 million, with $250,000 already received.
The funds will help Glycotest meet its working capital requirements for the development of diagnostics for early liver cancer detection and other commercialisation activities.
Glycotest is nearing completion of a clinical trial of its hepatocellular carcinoma (HCC) panel test with 20 medical sites in the US and Israel. The sample collection is substantially complete, allowing progress towards the test's validation.
Early clinical studies showed promising results, although some issues were identified that require further work and evaluation.
The fundraising aims to provide Glycotest with further investment to progress development, prepare for market launch in the US, and explore wider market opportunities.
In a statement, NetScientific CEO, Dr Ilian Iliev, said: "Glycotest is now better positioned to leverage its highly valuable HCC panel clinical study biobank in realizing the potential exhibited in preliminary clinical studies, with planned commercialization in the US, China, and other international markets."
The initial $1 million programme is expected to put Glycotest in a stronger position to pursue further funding from institutional and private investors later in 2023.
The terms of the 2023 secured convertible loan agreement with third-party investors are being syndicated by EMV Capital Limited, NetScientific's wholly-owned VC firm.
In 2019, NetScientific negotiated a $10 million investment and licensing agreement with Fosun Industrial Co, which received a minority stake in Glycotest and rights to develop and commercialize Glycotest's HCC panel test for early-stage liver cancer in China.
Glycotest retained rights to ex-China markets and has already received $7 million, with another $3 million due upon completing additional milestones.