DiaTech Oncology lands $18M from investor group

Funds to be used primarily for construction of testing facility

Pathology laboratory DiaTech Oncology has secured $18 million in venture financing from a number of individual investors and will greatly expand its local presence as a result.

The money will be used "almost entirely" for the purpose of building a testing facility somewhere in Middle Tennessee area, CEO Garry Latimer said. Latimer said the deal isn't quite done and that money from a few investors hasn't yet transferred to the deal's escrow account.

"The raise from individual investors is finished and the deal is scheduled to close soon and the escrow account will then be fully funded," Latimer said.

Diatech is in the process of seeking temporary space now while officials search for a permanent site on which to contruct a building. Latimer wouldn't give any further details about construction plans.

Brentwood-based DiaTech already runs a clinical lab at Montreal's McGill University, where it specializes in patient-specific anticancer drug sensitivity testing and diagnostic hematopathology, helping doctors determine the best treatment plans for their patients. The company's assay has been used on more than 50 types of tumor.