Pathology Inc. a Torrance Calif.-based pathology and diagnostic testing services received an undisclosed Series A investment led by ABS Capital Partners. England & Company acted as the exclusive adviser to the investor group. ORIX Venture Finance LLC provided venture debt to the Company.

PRESS RELEASE

Pathology Inc. a provider of anatomic pathology and molecular diagnostic testing services today announced it has received a Series A investment led by ABS Capital Partners a leading later-stage growth company investor and has named Vicki DiFrancesco as CEO and Steve Pierce as CFO. Ms. DiFrancesco brings over 30 years experience in the laboratory services industry most recently serving as Executive Vice President of Sales and Marketing for Spectrum Laboratory Network. Mr. Pierce was CFO of US Pathology Labs Inc. an ABS Capital portfolio company which was sold to Laboratory Corporation of America. Current CEO Alfred Lui M. D. will transition into the role of Chairman of the Board and will continue to serve along with Eric Glassy M. D. as one of the Medical Directors for the Company. Proceeds will be used to partially retire founding shareholders as well as support growth and invest in new technologies. Also as a result of the financing Mark Anderson General Partner at ABS Capital and John Stobo Managing General Partner at ABS Capital will join Pathology’s Board of Directors.

“Our Company has always been an industry leader in terms of adopting new technologies and delivering high quality service” said Lui. He added “With this investment and the addition of new leaders I am confident that we will maintain our edge in these areas and expand our offerings.”

“There is no question that health care is on everyone’s minds these days” said DiFrancesco. “The mindset is changing from episodic treatment of disease to preventative care. Due to continued demand for both routine and more advanced tests designed to support the early diagnosis treatment and monitoring of disease anatomic pathology has grown at a faster rate than the clinical laboratory testing market. We are excited about what the team at Pathology Inc. has built and all of the opportunities ahead for the Company.”

Pathology Inc. is recognized as the region’s leading anatomic pathology laboratory with a track record of combining innovative diagnostic technologies with nationally recognized pathology expertise. The Company specializes in diagnostic testing services with expertise in gynecology genitourinary pathology gastrointestinal pathology dermatopathology hematopathology and cytopathology. The Company also performs an array of tests focusing on women’s health including comprehensive liquid based Pap testing and an array of associated molecular diagnostic assays and computer assisted interpretation techniques. The women’s health market represents one of the largest anatomical pathology segments with the U.S. cervical cancer screening market alone estimated at over $1.7 billion.

“The Company is in an excellent position to capitalize on the increased demand for its services driven by favorable market dynamics deep diagnostic expertise and a strong reputation for providing prompt effective and personalized care for the patient’s benefit” said Anderson. “We look for companies that have strong leadership exceptional organic growth opportunities as well as the ability to serve as a strong platform for integrating potential strategic acquisitions—Pathology Inc. absolutely checks all these boxes.”

ABS Capital has backed other leading laboratory service companies such as Inform DX (merged into AmeriPath Inc.) US Pathology Labs Inc. (sold to Laboratory Corporation of America Holdings (NYSE: LH) and American Esoteric Laboratories Inc. (sold to Sonic Healthcare Limited.)

England & Company acted as the exclusive adviser to the investor group.

ORIX Venture Finance LLC provided venture debt to the Company.

About Pathology Inc.

Pathology Inc. is a provider of anatomic pathology and molecular diagnostic testing services. The Company has built a solid reputation for quality and customer service with clients that include OB/Gyns dermatologists urologists gastroenterologists and family practitioners as well as surgicenters endoscopy centers hospitals and independent laboratories. Pathology has 170 full time employees located at two separate facilities; its Torrance headquarters and a second smaller facility. Both facilities are CLIA certified and CAP accredited.

The Company’s pathologists through its association with Affiliated Pathologists Medical Group (APMG) are all board certified and have a variety of multi-specialty interests and expertise as well as extensive cumulative experience in outpatient pathology. They have provided pathology services to physician offices for over 25 years.

About ABS Capital Partners

ABS Capital Partners invests in the very best later-stage growth companies partnering with CEOs to create a bridge to the next critical stage of success. Whether success is defined as a winning IPO like American Public Education NeuStar and Rosetta Stone or a rewarding sale such as US Pathology Labs Course Advisor and Advanced Disposal ABS Capital’s financial backing and active partnership supports the CEO in tackling the challenges of rapid growth and creating significant long-term value.

Our partners are highly experienced at working with growth companies – with backgrounds in financial markets consulting and as C-level executives themselves. Our practical down-to-earth approach enables a strong partnership to determine and achieve well-defined goals. Our extensive network of resources delivers vital industry connections to our portfolio companies enabling them to capitalize on their competitive advantage.

ABS Capital Partners specializes in four growth sectors – business services health care media and communications and software. With over $2 billion raised since inception including a $420 million in our latest fund ABS Capital continues to build on its strong reputation for teaming with various market leaders to deliver strong returns to investors. For more information please visit www.abscapital.com.

About England & Company:

England & Company is a Washington DC-based merchant bank focused on providing the highest quality investment banking services and value-added capital to middle market companies and their financial sponsors. The firm’s principals bring extensive investment banking and private equity experience to companies in selected industries. England Securities a wholly owned subsidiary of England & Company and member of FINRA and the SIPC advises clients on strategic initiatives including mergers acquisitions financial restructurings and capital formation.

England Capital Partners combines the experience and relationships of the firm’s principals and advisors to identify private investment opportunities and partner with strong management teams in England & Company’s focus industries.

England & Company is actively involved in the laboratory industry and has recently completed the recapitalization of DCL Medical Laboratories and acquisition of DrugScan Inc. DCL Medical Laboratories is a leading full-service reference pathology laboratory focused on women’s health located in Indianapolis Indiana. DrugScan Inc. is a leading forensic toxicology laboratory and third party administrator located in Philadelphia Pennsylvania.

About ORIX Venture Finance LLC

ORIX Vec9bnture Finance provides enterprise financing to mid- and late-stage venture capital-backed companies via acquisition financing expansion capital and working capital term loans and credit lines. The Venture Finance team staffed with highly seasoned venture lending professionals meets the challenges facing growth companies by structuring flexible financing packages that meet your unique needs. We are dedicated to supporting the growth and success of professionally backed companies with a range of debt products. For more information about ORIX Venture Finance go to www.orixventurefinance.com.

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