CHICAGO--(BUSINESS WIRE)--Salveo Capital, an alternative investment firm specializing in the legalized cannabis space, today announced it has acquired a minority equity interest in PathogenDx, a provider of DNA-based pathogen testing kits for the cannabis, botanical, food and agriculture industries. Financial terms of the transaction were not disclosed.
Founded in 2014, PathogenDx’s mission is to deliver disruptive testing technology and solutions to the cannabis, botanical, food and agricultural testing markets that provide breakthrough simplicity, and cost-effectiveness, at an adaptable scale for both large and small testing facilities. The company’s technology offers growers, processors, producers, consumers and ancillary service providers within the botanical, food and agricultural markets real-time data and information pertaining to the quality of their product. PathogenDx’s testing can be scaled for testing facilities of all sizes from an individual plant to large agricultural fields. PathogenDx’s technology provides customers with access to accurate real-time answers to determine if their plants or crops have been contaminated with fungi, molds, viruses or mildew. The company is headquartered in Tucson, Arizona.
“With its cutting edge solutions and high quality products, PathogenDx represents an innovative and disruptive company that is changing the testing process for cannabis-related products as we know it,” said Jeffrey Howard, a Managing Partner at Salveo Capital. “We believe that as customers and growers continue to seek the latest and greatest methods to assure the utmost quality and purity in their product, the demand for PathogenDx’s services will continue to rise. We are thrilled to complete this investment and are very much looking forward to partnering with the entire PathogenDx team to drive further value into the business.”
“As we enter into the next phase as a company, it is critical that we have the strategic support in place to provide our customers with the premier products and services they have come to expect in the most simplistic and cost-effective manner,” said Milan Patel, Chief Executive Officer and Co-Founder of PathogenDx. “We are confident that Salveo’s investment and operational experience within the cannabis space will promote significant growth, help us expand into new markets, and continue to ensure the safest possible products from a human health standpoint. We are honored to welcome Salveo as an investor and are eager to begin collaborating with their team.”
Salveo Capital's primary investment focus is on high-growth, ancillary service providers to the cannabis industry - rather than more highly-regulated businesses that “touch the plant”. The firm is currently investing capital out of its first private equity fund (“Fund I”) and is targeting a $25 million close. Salveo is seeking to rapidly scale its platform with a goal of reaching $100 million of committed capital by 2019. In addition to PathogenDx, Salveo Capital has completed eight investments thus far including Flow Kana, Baker, Front Range Biosciences, Headset, Purissima, Hiku (formerly Tokyo Smoke), Treez and Wurk. Legalized cannabis is a $9 billion market in North America and, according to industry research, is expected to reach an estimated $22 billion by 2020. From an international perspective, various countries around the world including Australia, Germany and Spain are legalizing marijuana, while others including Canada, Israel and The Netherlands are permitting exportation.
Headquartered in Tucson, Arizona, PathogenDx provides disruptive testing technology and solutions to the botanical, food, and agriculture markets at an adaptable scale for both large and small testing facilities. The company offers growers, processors, producers, consumers, and ancillary services real-time data and information pertaining to the quality of their product, ensuring a safer commodity and preventing millions of dollars in losses from contaminated or spoiled crops. For more information on how you can utilize this simple, powerful and inexpensive DNA-based pathogen testing, visit www.pathogendx.com.
About Salveo Capital
Launched at the end of 2016, Salveo Capital is an alternative investment firm specializing in the legalized cannabis space, particularly ancillary businesses. Salveo Capital's approach is to bring an institutional quality discipline to company vetting, investment structures and portfolio management. The Firm is committed to shaping the early-stage, yet rapidly growing, industry by providing funding and development to companies with the will and vision to be the future faces of legalized marijuana. As cannabis legalization spreads, Salveo Capital seeks to build long term sustainable companies and support innovative technologies, products and services to help address the unique requirements of the industry. The firm is based in Northbrook, Illinois, and with vertical industry executives and cannabis operating advisors across the country, including key markets of California and Colorado. For more information, please visit www.salveocapital.com.