Pacific Edge on target to fund US expansion

Chief executive David Darling. Photo / Supplied

Cancer diagnostics company Pacific Edge says it has raised enough money to fund its United States expansion, despite falling slightly short of its target figure.

Pacific Edge, which has developed technology aimed at early detection of bladder cancer, successfully raised $5.1 million from a share placement on July 29 and last month set about raising a further $16 million through a three-for-seven rights issue, pitched at 19c a share.

The issue raised $11.4 million, reflecting a take-up of 72 per cent. About 19.2 million shares, out of a total shortfall of 23.5 million, were sold to institutions and other eligible investors via a so-called "book-build". Between the rights issue and the book-build, the take-up rate was 94.8 per cent.

The company intends to use the money to implement its strategy of commercialising Cxbladder in the United States for use by US clinicians.

Pacific Edge says bladder cancer is the fourth-most-expensive cancer to treat and incurs the highest total cost per patient of all cancers.

The capital raising, while small, was seen as a litmus test for the sharemarket's appetite for fresh capital.

Chief executive David Darling told APNZ he was pleased with the outcome, given the recent volatility on local and international sharemarkets.

"In this current market, to get 95 per cent of your target expectation is huge."

The company has some high-profile investors, among them Warehouse founder Sir Stephen Tindall and Peter Masfen, a long-time large private investor and former chairman of the wine company Montana.

The NZX put Pacific Edge on a trading halt during yesterday morning's book-build. When trade resumed, the stock was unchanged from Thursday at 23c.