NetScientific's Glycotest secures US$1m follow-on investment from Fosun
() , a deep tech and life sciences venture capital investment group, announced that its portfolio company Glycotest has secured a US$1m follow-on investment from Fosun Industrial.
As previously announced in May 2023, Fosun agreed to make the investment as part of a US$10m investment and licensing agreement signed between the parties in 2019. The agreement was conditional on Glycotest providing Fosun with a license allowing it direct assess to IP licensed by Glycotest. As Glycotest has now procured the license, Fosun's remaining investment commitment stands at US$2m, subject to milestones agreed in the 2019 contract.
As a result of the US$1m follow-on investment, Glycotest-secured convertible loans totalling US$812k plus interest may be converted into preferred shares in Glycotest at the election of the company. NetScientific confirmed that Glycotest intends to convert the loans pending confirmation from the lender. Following the US$1m investment and conversion, NetScientific's direct stake in Glycotest will be 55.9%, alongside Fosun's 34.75% and the convertible loan agreement's 6.16%.
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A positive update from NetScientific as its portfolio company Glycotest closes a US$1m follow-on investment from Fosun. The additional funding, complimented by the convertible loan agreement, will bolster Glycotest's balance sheet as it continues to progress toward commercialisation in the US and China. Glycotest is currently in advanced negotiations with a number of prospective partners, with further details expected in the near term.
Glycotest, a liver disease diagnostics company, will use the proceeds to support the development and validation of its assays ahead of commercial launch of its proprietary test. This validation is now possible after the completion of last year's subject enrolment and sample collection in Glycotest's clinical validation study, which yielded one of the world's largest biobanks of liver cancer blood samples.
The investment was facilitated by EMV Capital, NetScientific's wholly-owned venture capital and corporate finance firm. It is further testament to NetScientific capital-efficient investment model that has allowed Glycotest to grow without direct investment from NetScientific while the latter offers value creation guidance.
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