Chief executive David Darling told BusinessDesk the company aims to beef up its US sales team from four to 20 as it targets large commercial players, where it sees greater scale in rolling out its CXbladder on its mission to reach annual revenue of $100 million within the next five years.
"It's a very doable target, and could come sooner," Darling said. "We're looking to bring the company to a place where it's cashflow positive as soon as possible" though it's too early to determine when it will reach profitability, he said.
The capital raising comes after Pacific Edge announced two agreements with US healthcare network providers, giving it access to sell its CXbladder test to 44 million Americans, and announced its first commercial sale to US clinicians.
That's seen the share price climb as high as a $1.75, a record, and Darling said there had been quite a lot of interest from Asian and US investors after the company received coverage in the Wall Street Journal.
The offer was "carefully priced for our shareholders to make sure they get upside," Darling said.
Any rights not taken up will be sold into a back-end shortfall bookbuild to eligible investors on November 29 and shareholders will be able to participate in an oversubscription facility of up to 100 percent, though Darling said the company isn't planning on raising extra funds.
Trading in the rights begins on November 5 and closes on November 21, with a November 7 record date for eligibility. The offer closes on November 27, and allotment for shares under entitlement is scheduled for December 4.
First NZ Capital was appointed organising participant for the capital raising.
Pacific Edge was formed in 2001 to commercialise intellectual property acquired from the University of Otago, listing on the stock exchange two years later in a public offer of 12 million partly paid shares at 25 cents apiece.
The company has published research showing the non-invasive Cxbladder procedure is more successful than current, more costly invasive methods such as cystoscopy.
Commercialisation of the test comes after some $28 million of capital investment on Cxbladder and a range of other diagnostic tests to be rolled out in the future.