March 21, 2010 (FinancialWire) — Cancer diagnostics firm Biomoda, Inc. (OTCBB: BMOD) said that it has entered into agreements with a syndicate of institutional investors for up to $2 million.

The company’s CyPath diagnostic assay, which binds to cancer cells and causes them to fluoresce red under ultraviolet light is currently in clinical trials as a diagnostic for early-stage lung cancer. Pending U.S. Food and Drug Administration clearance, CyPath is for investigational use only.

The company said it will sue the proceeds from this financing to continue our clinical trials, submit its findings to the FDA for clearance as a Class III medical device and begin commercialization of the technology for the early detection of cancer.

The initial funding is $1 million, with the investors having the right to invest an additional $1 million.

New Mexico-based Biomoda is a cancer diagnostics company focused on the development of accurate, inexpensive and noninvasive tests for the early detection of cancer.

In addition to its first product for lung cancer, diagnostic assays for cervical, breast, colorectal, bladder, and oral cancers are targeted for development.

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