Cancer diagnostics company Pacific Edge has undertaken an $8 million share placement to institutional and other select investors in New Zealand in order to shore up its balance sheet.
The placement was undertaken at no discount to market with investors subscribing at 50 cents per share, the trading price on Tuesday.
"While the company has sufficient cash on hand of approximately $9 million for its immediate growth requirements, the new investments provides additional support for Pacific Edge to drive its commercial growth," it said.
Pacific Edge has a range of diagnostic and prognostic tests for better detection and management of bladder cancer, known as Cxbladder tests. The company claims its non-invasive tests are more accurate than other urine-based cancer tests.
The Dunedin-based company said it is generating increasing sales revenue, with a 162% jump in operating revenue in the last financial year. It also noted test throughput is increasing as a greater number of urologists trial and purchase Cxbladder tests.
Pacific Edge chief executive David Darling also said the company was starting to see some real progress, particularly in the United States where it is investing in infrastructure and new products.
He said the company's capital requirements for its growth strategy this year will be similar to last and the additional funds "will be used to progress and expedite our commercial goal of getting to a cash flow position as fast as possible, with our focus squarely on the USA."