Financial analysts seemed convinced of the long-term advantages of the deal but noted that investors may remain skeptical in the near term.
The company — develops tests for the early detection of cancer and other diseases in whole blood — is targeting C$3.7 million in a private placement financing round.
The firm recently submitted an application to the US Food and Drug Administration to expand Cologuard's label to the 45 to 49 age group.
For the Evry, France-based company, the grant will support its vision of making its technology available as a platform for running oncology assays.
Singapore-based Lucence Diagnostics will team with Stanford to analyze sequencing and imaging of liver cancer patients to predict therapeutic effectiveness.
The company said it will use part of the proceeds to repurchase some of its senior notes due in January 2025, and the rest for corporate purposes.
The company said test volume for its Cologuard colorectal cancer test rose 66 percent during the quarter to 292,000.
The partners anticipate developing tests that analyze clusters of biomarkers to detect cardiovascular disease, kidney disease, liver cancer, and other diseases.
Glycotest's biomarker test for detection of hepatocellular carcinoma calculates the amount of monosaccharide fucose that appears abnormally on specific serum glycoproteins.
The team said it will partner with startup Early Diagnostics to commercialize the assay, which integrates DNA methylation analysis and computational technology.