Cizzle Biotechnology Holdings PLC said on Monday that it raised £350,000 from a subscription of 16.7 million shares at 2.1 pence per share, with new and existing investors.

The London-based diagnostics developer said that the funds raised will be used to continue the development of a laboratory-development test for early detection of lung cancer, progress the company’s proprietary CIZ1B biomarker blood test, and commence development of its point of care rapid test for use in doctors’ offices and pharmacies.

The CIZ1B biomarker blood test refers to research proving that a stable blood plasma biomarker, a variant of CIZ1, can be measured with a high sensitivity through an ELISA process, allowing for testing in a high-throughput, hospital-friendly format. This test is required for the early detection of lung cancer.

Cizzle announced that its loan facility agreement with E3 Fund SP, entered into on September 20 and amended on April 21, has been altered to allow the subscription to proceed at a premium to the fixed repayment price of the facility of 1.8p per share.

The company said the facility has been extended until December 8, and will be drawable in tranches of not less than £100,000 as request by the company or the investor.

Cizzle said the first drawdown will be available to the company following shareholder approval at the next general meeting, to allot 23.8 million new shares.

Repayment of the facility is to be by way of issues and allotment of new shares in the capital of the company, at a fixed price equal to the issue price of 2.1p per share.

Executive Chair Allan Syms said: ‘The funds raised from the subscription and converting the facility in full will provide continued momentum in bringing our proprietary novel technologies for detecting lung and other cancers at an early stage to thereby potentially preventing suffering and saving many lives.’

Shares in Cizzle Biotechnology were down 8.8% at 2.17 pence in London on Monday.

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