PathogenDx has closed US$7.5 million in Series B funding
Photo as seen on company Facebook Page
PathogenDx, the Arizona-based developer of DNA-based pathogen testing technology, has raised US$7.5 million in Series B funding. This round of investment was achieved in under three months, the company said.
With a focus on pathogen detection in cannabis and hemp, PathogenDx will use the cash injection to further expand its technology into food and agriculture testing while continuing to build on its leadership position with a portfolio of domestic and international clients in the cannabis industry.
The announcement follows on from earlier news about the broader application of PathogenDx proprietary microarray technology for rapid strain identification. The company said its technology can reveal bacterial and fungal test results in six hours or less, compared to the industry standard of 72 hours or longer.
As the cannabis sector matures to full federal level acceptance, PathogenDx claims to be leading the path and has taken a proactive approach of obtaining federal approval by the AOAC of its technology for Food and Environmental testing applications by the first half of 2020.
Milan Patel, PathogenDx CEO, explained: "Our goal for the next year is to expand our DNA processing so other industries have access to affordable and reliable pathogen test results to improve product safety and protect consumer health."
Patel said this investment "is a critical vote of confidence" by leaders in the industry.
The investment round was led by Cresco Capital Partners with participation from Altitude Investment Management, Arcadian Investment Partners, Panther Opportunity Fund LLC, Salveo Capital, Flatiron Venture Partners and other investors.
"We are constantly looking for innovative businesses to build a robust cannabis market, and we were thoroughly impressed by Milan Patel's long term vision for both his company and the industry," said Matt Hawkins, Managing Partner at Cresco Capital Partners.
"Patel and his team have the experience and passion to create the next standard-bearer in pathogen testing technology, and we are thrilled to partner with them," he concluded.
Jon Trauben from Altitude Investment Management concurred: "With safety top of mind these days, backing a company that ensures clean cannabis provided a compelling opportunity to invest in a business that's doing well by doing good."
For Ephraim Lindenbaum, Managing Director at Advance Ventures, a Silicon Valley-based AgTech, FoodTech, and Digital Health investor, PathogenDx "is proving they have the break-through technology and team to disrupt both testing and product standards throughout the agricultural, food and medical industries."