Todos Medical Ltd. (OTCQB:TOMDF), an in vitro diagnostics company focused on distributing comprehensive solutions for coronavirus (COVID-19) screening and diagnosis and developing blood tests for early detection of cancer and Alzheimer’s disease, has announced a $3.4 million strategic investment from tech-focused venture capital firm Yozma Group Korea.
Under the terms of the agreement, Yozma has been issued a one-year $3.4 million convertible promissory note that is convertible into common shares at a fixed price of $0.0599 per share.
Todos said it intends to use the proceeds from the Investment primarily to retire outstanding convertible notes, complete the acquisition of Provista Diagnostics for its Videssa breast cancer test and its COVID-19 PCR testing capabilities, and general working capital.
READ: Todos Medical sales surge 50% month-over-month in December to $4.8M on demand for its COVID-19 testing products
“Yozma is one of the leading cross-border investment firms in South Korea, and their investment is a significant milestone for Todos,” commented Gerald Commissiong, president & CEO of Todos Medical in a statement.
“This capital infusion is extremely well-timed, insofar as Todos will be able to aggressively pursue sales growth expansion and begin to move the rest of the Company’s portfolio forward. We believe the COVID-19 pandemic has reignited tremendous interest in the diagnostic testing space as we realize that monitoring for health is paramount for early diagnosis which leads to early intervention, as well as improved treatment outcomes.”
“Yozma Group Korea is pleased to make this Investment into Todos Medical,” the Investment team of Yozma Group Korea said. “The rapid growth Todos has been able to generate by bringing together and deploying comprehensive solutions for COVID-19 testing speaks volumes about the management team’s ability to execute a commercial strategy in a difficult environment.
"We see a significant opportunity to fuel Todos’ growth with this capital infusion as complementary products are added to their expanding sales pipeline. Moreover, we see tremendous opportunity to help drive cross-border collaboration for Todos in South Korea,” they added.
Headquartered in Rehovot, Israel, Todos Medical engineers life-saving diagnostic solutions for the early detection of a variety of cancers. The company's state-of-the-art and patented Todos Biochemical Infrared Analyses (TBIA) is a proprietary cancer-screening technology using peripheral blood analysis that deploys deep examination into cancer's influence on the immune system, looking for biochemical changes in blood mononuclear cells and plasma. Todos' two internally-developed cancer-screening tests, TMB-1 and TMB-2, have received a CE mark in Europe.
Todos recently entered into an exclusive option agreement to acquire US-based medical diagnostics company Provista Diagnostics, Inc. to gain rights to its Alpharetta, Georgia-based CLIA/CAP certified lab and Provista's proprietary commercial-stage Videssa® breast cancer blood test. The transaction is expected to close in the third quarter of 2020.
Todos is also developing blood tests for the early detection of neurodegenerative disorders, such as Alzheimer's disease. The Lymphocyte Proliferation Test (LymPro Test™) is a diagnostic blood test that determines the ability of peripheral blood lymphocytes (PBLs) and monocytes to withstand an exogenous mitogenic stimulation that induces them to enter the cell cycle. It is believed that certain diseases, most notably Alzheimer's disease, are the result of compromised cellular machinery that leads to aberrant cell cycle re-entry by neurons, which then leads to apoptosis. LymPro is unique in the use of peripheral blood lymphocytes as a surrogate for neuronal cell function, suggesting a common relationship between PBLs and neurons in the brain.
Additionally, Todos has entered into distribution agreements with companies to distribute certain novel coronavirus (COVID-19) test kits. The agreements cover multiple international suppliers of PCR testing kits and related materials and supplies, as well as antibody testing kits from multiple manufacturers after completing validation of said testing kits and supplies in its partner CLIA/CAP certified laboratory in the United States. Todos has formed strategic partnerships with Integrated Health LLC, MOTOPARA Foundation to deploy mobile COVID-19 testing in the United States.
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