Braveheart Investment Group PLC (LON:BRH) noted that investee company Paraytec Limited has engaged an adviser to raise £4mln in equity fundraising.
Paraytec said the funds will be used for further development, regulatory approval and commercialisation of its innovative urine test for the detection and monitoring of bladder cancer.
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The AIM-listed fund management and strategic investor group currently has a 42% aggregate holding in Paraytec's current share capital.
Braveheart said that, given the level of its existing shareholding in Paraytec, the group does not intend to participate in the equity fundraising, though it is fully supportive of the strategic rationale for it to take place.
Trevor Brown, Braveheart’s CEO said: 'Paraytec's bladder cancer test shows excellent results in the laboratory and, once clinical trials are successfully completed, it will address a significant clinical need for a simple and non-invasive test for detecting and monitoring bladder cancer.
“The funds will be used to complete the development programme and conduct the clinical study required to obtain the necessary regulatory approvals and commercialise the test.”