Cancer diagnostic developer Zetiq Technologies Ltd. plans to raise $5 million for its US subsidiary C-Detect Diagnostics Inc., at a company value of $14.2 million, before money, for C-Detect, and to float the company on Wall Street. Zetiq is approaching pension fund managers in the US.
Zetiq has developed a technique for marking cancer cells for the screening, monitoring, and diagnosing of early stage cancer and contrasting the cancer cells from healthy cells. The company set up C-Detect in the US and granted it an exclusive license to commercialize the CellDetect technology for the diagnosis of cervical cancer in the US, Canada, and Mexico. Zetiq has also provided C-Detect with services ahead of US Food and Drug Administration (FDA) regulatory approval, for which C-Detect has paid $3 million.
Five pension funds are reportedly interested in making a private investment in public equity (PIPE) in C-Detect. The investment is subject to US Securities and Exchange Commission (SEC) approval of C-Detect registration of its shares on a stock exchange.
Zetiq CEO Dr. Adi Elkeles said, "The planned financing round will enable us to complete development of the company's first product line for the early detection and diagnosis of cervical and bladder cancer. It will also enable us to set up marketing channels and strategic collaborations in the US."
Zetiq is a wholly owned subsidiary of life sciences holding company Bio-Light Israeli Life Sciences Investments Ltd. (TASE:BOLT).
Published by Globes [online], Israel business news - www.globes-online.com - on June 3, 2010
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