NetScientific PLC has announced that its portfolio company, Glycotest, Inc., has secured a $1 million follow-on investment from Fosun Industrial Co., Limited. This investment is part of a $10 million investment and licensing agreement between the two parties in 2019. As a result of this investment, Glycotest has secured convertible loans, which may be converted into preferred shares. Following this investment, NetScientific's direct stake in Glycotest will be 55.90%, alongside Fosun's interest of 34.75% and the 2023 CLA interest of 6.16%.
The proceeds of the investment will support Glycotest in the development and validation of its assays ahead of commercial launch. Glycotest has completed subject enrollment and sample collection in its clinical validation study, providing a valuable biobank which the company believes now represents one of the world's largest collections of liver cancer blood samples. The company is also in advanced negotiations with prospective collaboration partners.
Dr. Ilian Iliev, CEO of NetScientific and Chair of Glycotest, expressed his appreciation for the additional funding from Fosun, stating that it demonstrates strong financial support as Glycotest progresses towards commercialization, including in the US and China. He also highlighted the capital-efficient investment model and the deployment of the Value Creation Services team to underpin growth.
NetScientific is a deep tech and life sciences VC investment group with an international portfolio of innovative companies. The company adds value through the proactive management of its portfolio, progressing to key value inflection points, and delivering investment returns through partial or full liquidity events. Glycotest, on the other hand, is a US-based liver disease diagnostics company commercializing new and unique blood tests for life-threatening liver cancers and fibrosis-cirrhosis.
This investment signifies a significant step for Glycotest in its journey towards commercialization and further solidifies the partnership between Glycotest and Fosun.