Pacific Edge slips after stellar week

Shareholders in the Dunedin biomedical company indulge in some profit-taking.

It’s not just biomedical company Pacific Edge’s [NZX: PEB] board that is popping the champagne.

Shareholders are taking profit after a week, in which the company’s share price has almost doubled, after signing its second US deal in as many weeks.

The company’s shares started the week at 72 cents and, after gains of  47% on Tuesday and 29% on Wednesday, the shares slipped slightly to $1.49 by midday today.

Volume was particularly strong on Wednesday, with 6.9 million shares changing hands.

The New Zealand Shareholders’ Association says the company is doing the right thing by raising up to $20.5 million through a 2 for 15 renounceable rights issue to investors at 55 cents apiece.

“Because of the share price going the way it has, the existing shareholders are now enjoying a very healthy discount,” association acting chairman Grant Diggle says.

“We think that’s a good thing because the company is showing loyalty to the shareholders who have stuck with them.”

Mr Diggle says Wednesday’s price spike, when it soared from $1.06 to $1.45, before dropping back to $1.37, was probably related to an offshore purchase, probably in the United States.

Pacific Edge’s goal is for $100 million annual revenue within the next five years.

In March, NBR Rich Lister Peter Masfen's PH Masfen Charitable Trust sold 10 million shares. Pacific Edge's share register includes Sir Stephen Tindall's K One W One Ltd.

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