Pacific Edge seeks $20m for growth

Chief executive David Darling said the company aimed to beef up its US sales team from four to 20.

Pacific Edge, the bladder test investor whose share price has more than doubled in the past week, wants to raise as much as $20.5 million from shareholders to fund its growing push into the US, having grabbed a beach-head with two healthcare network providers in the world's biggest economy.

The Dunedin-based company will offer a 2 for 15 renounceable rights issue to investors at 55c apiece.

The company's shares closed up 31c yesterday at $1.37.

The capital raising is expected to ease short- to medium-term risks around Pacific Edge's liquidity.

Of the funds raised, $10.2 million will go to building the company's sales team in the US over the next three years, $6.6 million will be spent on operational expenditure at the US and New Zealand commercial labs, and $3.7 million will go towards new product development, launch and roll-out.

Chief executive David Darling said the company aimed 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.

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.

Darling said the offer was "carefully priced for our shareholders to make sure they get upside".