Pacific Edge raises $28.9m through issue
Bladder cancer detection company Pacific Edge has raised $28.9 million through a rights issue to shareholders.
The issue offered shareholders the right to buy 2 new shares for every 15 they owned.
The offer sought to raise $20.5m.
Pacific Edge chief executive David Darling said yesterday the rights issue would provide funding to step up the rollout of its United States sales force to target healthcare providers and urology groups.
Darling said the share offer would help the commercialisation programme of the Cxbladder diagnostic test to achieve the target of $100m of annual revenue from Cxbladder within five years of commercial trading.
The bladder cancer diagnostic technology was now being made commercially available in the United States, Australia and New Zealand.
"Revenues are starting to progress as we penetrate those markets," Darling said yesterday.
Pacific Edge said Cxbladder is a quick, cost effective, non-invasive and highly accurate cancer detection test.
Those attributes were being recognised by clinicians and district health boards in New Zealand who saw Cxbladder as offering significant clinical and patient benefits over the alternative of cytology.
Pacific Edge's share price doubled in price from mid-October after announcing an arrangement with US provider network, FedMed. It has a network of over 550,000 physicians, 4000 hospitals and 60,000 ancillary care providers.
Some large Pacific Edge shareholders took the opportunity of the high share price to sell a portion of their shareholding last month and early this month.
Peter Masfen reduced his stake to 4.2 per cent from 5.4 per cent.
Pacific Edge director Colin Dawson sold rights at 73 cents each and collected $80,000.