Israel’s cancer diagnostic developer Zetiq Technologies plans to raise $5 million for its US subsidiary C-Detect Diagnostics, at a company value of $14.2 million, before money.

Zetiq has developed a technique for marking cancer cells for the screening, monitoring, and diagnosing of early stage cancer and contrasting the cancer cells with healthy cells. The planned financing round will enable the company to complete development of its first product line for the early detection and diagnosis of cervical and bladder cancer.

The company set up C-Detect in the US and granted it an exclusive license to commercialize the CellDetect technology for the diagnosis of cervical cancer in the US, Canada and Mexico.

Zetiq has also provided C-Detect with services ahead of US Food and Drug Administration (FDA) regulatory approval, for which C-Detect has paid $3 million.

Five pension funds are reportedly interested in making a private investment in public equity (PIPE) in C-Detect. The investment is subject to US Securities and Exchange Commission (SEC) approval of C-Detect registration of its shares on a stock exchange, reports Globes, Israel’s leading financial daily.

Zetiq is a wholly owned subsidiary of life sciences holding company Bio-Light Israeli Life Sciences Investments.