Pacific Edge to raise up to $80 million

Cancer diagnostics company Pacific Edge wants to raise up to $80m. Photo / File

Cancer diagnostics company Pacific Edge is to raise up to $80 million to accelerate its growth strategy which is largely focused on the United States.

The announcement comes just weeks after the NZX-listed company said no capital raising had been approved by its board after details of a share offer were mistakenly released on the ASX.

Pacific Edge also confirmed today it had been approved for a foreign exempt listing on the ASX and shares would begin trading on that exchange from Monday September 27 at 2pm New Zealand time.

The company is looking to raise $60m through a placement to institutional investors and up to $20m in a retail offer to eligible investors.

The company said the majority of the funds raised would be used to accelerate growth in the company's key US market.

It would also use it to further develop and grow the commercial process in Southeast Asia targeting both primary and secondary care physicians.

It also wants to leverage the company's first mover advantage in the detection and management of urothelial cancer and develop and grow new product opportunities by using the company's intellectual property across other cancers that can be detected in urine.

The funds would also help it maintain a cash buffer for balance sheet management and working capital purposes as the company transitions to profitability.

Chris Gallaher, Pacific Edge chair said the achievement of significant commercial milestones had positioned the company to take advantage of growth opportunities in markets of scale, particularly the US.

"While test sales and revenue are already growing, additional capital will enable Pacific Edge to accelerate the execution of our growth strategy and capitalise on opportunities."

Gallaher said the ASX dual listing combined with an equity raise offered a number of benefits for the company and shareholders including access to a wider pool of healthcare and other investors, increased liquidity, the opportunity for further analyst coverage and an acceleration in commercial activity.

The company has been placed into a trading halt while it undertakes the institutional placement.

The retail offer will open after the placement with eligible shareholders able to apply for up to $50,000 worth of shares with the price offered at the lower of the price paid for shares under the placement and the volume weighted average price of Pacific Edge's shares on the NZX over the 5-day trading period before the closing date of the retail offer.

Pacific Edge shares last traded at $1.47 and are up 84c over the year.