Glycotest Inc. Completes $10 Million Series A Financing with Fosun Pharma

Significant external equity investment by a prominent pharmaceutical company in a NetScientific portfolio company

London, UK – October 22, 2018

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

NetScientific plc (“NetScientific”, AIM: NSCI), the transatlantic healthcare IP commercialisation group, announces that its portfolio company Glycotest Inc. has successfully agreed to a $10m Series A financing round with Shanghai Fosun Pharmaceutical Co., Ltd. (“Fosun Pharma”), a leading healthcare group based in China.

The transaction includes an equity investment of an upfront initial tranche of $3 million, with the remaining $7 million due on completion of certain milestones, in return for a 40% interest in Glycotest Inc.. The transaction is contingent on ODI (outbound direct investment) approval and The Committee on Foreign Investment in the United States (CFIUS) approval.

The proceeds will be used to bring Glycotest Inc.’s diagnostic HCC Panel, a biomarker panel driven by a proprietary algorithm for the detection and surveillance of curable early-stage hepatocellular carcinoma (HCC), towards commercialisation in the US and to advance pipeline assets in liver fibrosis and cholangiocarcinoma (bile duct cancer). HCC is the most common form of primary liver cancer with over three million patients (killing c.350,000 pa^[1]) and has a market worth in excess of $800m in the US alone^[2]. Fosun Pharma is receiving the rights to develop and commercialise the HCC Panel in China, for which Glycotest Inc. will receive a royalty, with Glycotest Inc. retaining rights to ex-China markets.

Commenting on the news, NetScientific’s Chief Executive Officer and Chairman of Glycotest Inc., Francois R. Martelet said:

“The agreement of this financing round marks a pivotal moment for Glycotest Inc. and will set in motion the final stage of its progression towards commercialisation in the US.

“This key event will also help NetScientific realise the true value of its portfolio, and we foresee further upside in the very near future.

“We are excited to collaborate with Fosun Pharma, to make the HCC Panel available in the Chinese market, where the prevalence of HCC is very significant and the incidence is growing.”

The full text of the announcement from Glycotest Inc. can be found below.

Upon satisfaction of the contingent ODI approval, NetScientific’s controlling interest will be 50.4% of Glycotest Inc. calculated on a fully-diluted basis following the closing of the Series A Financing.

[1] Chen, Jian-Guo & Zhang, Siwei. (2010). Liver cancer epidemic in China: Past, present and future. Seminars in cancer biology. 21. 59-69.; [2] Edison Investment Research

For more information, please contact:

A conference call for analysts and investors will be held at 13:00 BST / 08:00 EST. Dial in details are below. A corresponding presentation will be available to download at https://netscientific.net/presentations shortly before the call.

UK / International: +44 (0) 2071 928501

United States: +19177200181

Conference ID 6797314