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Zetiq Technologies Ltd., A Subsidiary Of Bio-Light Ltd Is Raising $5 Million In New York, Via Its Subsidiary In The United States
6/4/2010 7:31:22 AM
Ramat Gan, Israel, April 12th, 2010 "Zetiq Technologies", a subsidiary of Bio-Light Ltd (TASE: BOLT), the proprietor of CellDetect® technology aimed at identifying and diagnosing bladder cancer in biopsies, is raising funds from pension funds in the USA, via its subsidiary in the USA, C_ DETECT, that is in the process of registering for trade on the NY stock exchange.
This attests to the fact that despite the recent financial crises, exceptional late stage technologies can still obtain financing to help improve life.
This week C_ DETECT signed an agreement with five pension funds in the USA for PIPE investments in C_ DETECT stocks. According to the agreement, the investment will be carried out based on its worth of $14.2 million. The investment agreements were not contingent upon other detailed agreements or further suitability examinations, however their prerequisite for investing was that C_ DETECT register stocks for trade in the States.
Furthermore, the investment agreements stipulate that C_ DETECT has PUT options to sell to the pension funds additional C_ DETECT stocks in the 12 months following the initial investment, and this will be a function of the scope of stock trade.
Within this framework Zetiq will issue C_ DETECT an exclusive license to trade CellDetect® technology for the identification and diagnosis of bladder cancer in the USA, Canada and Mexico. Concurrently, a service agreement will be signed between Zetiq and C_ DETECT, whereby Zetiq will supply developmental services for the completion of products and regulatory licensing in the USA. The regulatory licensing process and business development in the USA will be carried out by C_ DETECT, under the leadership of a local, experienced and well known professional in the field, with whom the company is undergoing advanced negotiations.
Dr. Adi Elkeles, CEO of Zetiq stated, "The capital raised by C_ DETECT will allow us to complete the development of our primary products for early detection of cervical and bladder cancer and establish avenues for strategic action and collaboration in the USA. This is in addition to the signing of a contract between Zetiq and China’s Biomex that will enable us to increase productivity and marketing."
According to Dr. Ami Eyal, Medical Director of Zetiq and CEO of Bio-light, its parent company, "This recruitment, along with the establishment of our subsidiary in the USA, is an additional correlation to the surge of development that will enable us to increase productivity and marketing. The recruitment in the States will afford us better penetration into American and other markets, with distinct products for detection of numerous types of cancer. Moreover, establishing the license worth at $14.2 million for technology in North America alone reflects the immense potential of Zetiq and is a base for expected value of both Zetiq and Biolight."
Once the C_ DETECT stocks have been registered for trade, in the second quarter of 2010, the funds will invest in the company. The fundraising is headed by the Spark Corporation, led by Mr. Jack Brewer.
Zetiq is a subsidiary of Bio-Light Life Science Investments, a management and holding company specializing in biomedical technologies. Bio-Light is traded on the Tel Aviv Stock Exchange under the symbol TASE:BOLT.
Zetiq Technologies Ltd. has developed unique technology for differential staining and morphological visualization to differentiate between non cancer cells and a wide variety of cancer. The company's products alleviate the process of locating and identifying suspected cancer cells, reduce error, simplify the process and have a potential to be fully automated. The technology is significantly more accurate and precise than any other existing examination.
The first product produced by the company was a kit for early detection of cervical cancer that was proven, in the clinical trials, to be much more effective and precise than any known tests thus far.
Zetiq recently announced that its second line of products, for early detection of bladder cancer, also proved to be specific and efficient in detecting cancerous cells. During its next stage, the company intends to examine early detection of bladder cancer via urine samples, in place of complex, invasive and painful examinations, that take place today.
Zetiq's technology uses dual analysis of both color discrimination and morphological analysis to differentiate between neoplastic and non neoplastic cells and therefore is adaptable in constructing protocols for several kinds of cancer.