Pacific Edge raises over $100m in oversubscribed offering

Pacific Edge will use the new capital to accelerate its growth strategy. Photo / Supplied

Pacific Edge closed its capital raising oversubscribed after raising over $100 million as it aims to accelerate its growth strategy.

The cancer diagnostics company said it had raised $103.5m of new capital, made up of $23.5m in a retail offer to eligible investors and $80m through a placement with new and existing shareholders that was upsized from $60m due to the high demand.

Pacific Edge said it received applications for its retail offer totalling $80m, 300 per cent above the $20m being offered. As a result, Pacific Edge accepted $3.5m in oversubscriptions.

Chris Gallaher, chair of Pacific Edge, said the capital raise would enable the company to leverage commercial milestones and accelerate its growth strategy in the US and other targeted markets of scale.

"Our company continues to make strong progress as we position our Cxbladder suite of tests as the diagnostic product of choice for urologists and patients. The positive momentum seen in FY21 and into the first quarter of FY22 has continued with ongoing growth in both test numbers and cash receipts, despite the impact of Covid-restrictions on the healthcare market," Gallaher said.

"We would like to thank all of the Pacific Edge shareholders who participated in the capital raise for their strong support."

It's been a turbulent past month for the NZX-listed Pacific Edge, with the stock exchange watchdog, NZ RegCo, investigating the company over disclosures.

The company had announced on September 23 it was seeking to raise up to $80m before lifting that figure to $100m the following day after strong demand from investors.

NZ RegCo said it had already been talking to the company and the Australian Stock Exchange about information released two weeks prior.

That announcement was about the firm's listing on the ASX, but also outlined plans to raise $70m, which Pacific Edge claimed was incorrect and had been posted inadvertently with no money raising having been approved.

Pacific Edge said it was complying with rules of disclosing relevant information.

The new shares under the retail offer will be issued at a price of $1.35, which represents the lower of the price paid by investors in the placement ($1.35) and the volume-weighted average price of Pacific Edge's shares on the NZX over the five-day trading period up to and including the closing date of the retail offer on 13 October 2021.

Pacific Edge shares last traded at $1.38 before going into a halt.

Settlement and allotment of the new shares is expected to occur on 20 October 2021, with trading on the NZX and ASX to commence on the same day.