US fund takes stake in diagnostics firm Pacific Edge

Dunedin-based Pacific Edge wants to grow sales for its bladder cancer diagnostics technology.

Pacific Edge said Manchester Management Company, a US privately-owned fund specialising in biotech and life sciences investments, will take a 1.7 per cent stake in the company, reflecting growing international investor interest.

The Dunedin-based cancer diagnostics company said it has accepted an investment offer of $2.622 million and will issue 8.2 million shares in aggregate to Manchester Management at 32 cents per ordinary share, a 24.75 per cent premium over the volume weighted average price for the five-day trading period prior to July 27.

The shares jumped 21 per cent, or 5 cents, to 28.5 cents on the news but are still down 40 per cent so far this year.

Pacific Edge currently has 466.3 million shares on issue.

"The US fund adds further depth to the company's register and is a reflection of the growing international investor interest in Pacific Edge," said Pacific Edge chairman Chris Gallaher.

The capital will be used to strengthen the company's balance sheet as it continues to grow sales for its Cxbladder bladder cancer diagnostics technology.

Gallaher said the company is still focused on achieving a positive net cashflow position and "the new investment provides additional support for Pacific Edge to drive its commercial growth".

Pacific Edge, which has a suite of four Cxbladder cancer diagnostics tests, reported a loss of $19.7m in the year to March 31, or 4.5 cents per share, versus a loss of $22.6m in the prior year, or 5.7 cents per share, after the prior year was restated in line with the NZ IFRS 15 revenue accounting standards.