Pacific Edge trading halt lifted
Pacific Edge, the Dunedin-based DNA diagnostic test company, had its shares halted by NZX Market Supervision after they jumped to a 13-year high.
The shares (NZX: PEB) rose 13% to 34 cents today, the highest since they spiked to 46 cents on May 9, 2004, and have gained 62% since September 4. That values the company at $93 million.
Pacific Edge chief executive David Darling told NBR ONLINE he was surprised a trading halt was imposed.
He says nothing has happened that needs to be announced to the market under continuous disclosure rules that would trigger such a share price jump.
"People suddenly get it and it only takes a few people to start buying a few shares and your share price goes a bit wonky."
NZX lifted the trading halt just before 5pm after Mr Darling's response the company was not aware of any material information that needed to be disclosed.
Before today's halt more than one million shares had been traded. The stock spiked earlier this week.
Share price inquiries typically ask if a company is privy to any information not generally known in the market that could account for an unusual move in its shares.
The last statement from the company was on September 11 and concerned a waiver it obtained from the NZX for having only one independent director after the retirement of a board member.
In August, the company said it had received independent clinical confirmation that its Cxbladder detection test was at least as effective as other methods.
The validation in the American Journal of Urology could be worth up to $100 million a year in five years' time for Cxbladder, it said.
Patients with bladder cancer or pre-cancer symptoms often need to have multiple visits to a urologist.
However, a Cxbladder test can be achieved from a urine sample collected at a patient's home and the sample sent to Pacific Edge for analysis.
NBR Rich Listers Peter Masfen and Sir Stephen Tindall are major Pacific Edge investors.
- Additional reporting by BusinessDesk
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Comments and questions4
What is the difference between a 13 year high (headline) and a increase to the highest price since 2004? Answer: 5 years.
Pacific Edge has been all hype since floating and has never delivered despite constant promises
Hopefully the major shareholders like the Masfen family are not benefitting from information that all shareholders are not privy to - or this is the big ramp up so that they can sell out at a profit.
Time will tell - but good on NZX for looking into the company - one could be wary of wheher this is another NZX slapping over the hand with a wet bus ticket approach that they have been constantly guilty of - their traditional spineless approach
I don't know about that. They have a great product - no hype in the ability of CxBladder to detect cancer. The issue is commercialising the product, and cracking the US market. They are in the process of building their lab in the states now.
I think your comments re the Masfens are unfortunate. They have helped keep this company alive over the last few years through a global financial crisis. They clearly believe in the vision.
All hype ? Constant promises ?
The problem with a lot NZ investors is that they will buy shares with the expectation that they will sell them for a big profit in six months time. Some have no idea what investing in a science based company means and that developing medical based products takes a lot of time and money.
Pacific Edge have remained focussed on developing their products over a long period and maybe some people are starting to see their potential.