Listed cancer diagnostics company Pacific Edge plans to raise up to $21 million through share placement and rights issue to fund the establishment of a laboratory in the United States.
Pacific Edge said it had raised $5.1 million from a placement of 23 million shares at 22c a share to institutions and habitual investors. It planned to raise a further $16 million from a three for seven rights issue, at 19c a share.
First NZ Capital Securities was placement agent and lead manager of the capital raising. Pacific Edge said it was in late-stage negotiations to establish a headquarters in Hershey, Pennsylvania, where it planned a laboratory and marketing activities.
Proceeds will give Pacific Edge the cash to commercialise its cutting-edge diagnostic and prognostic tests in the United States for the management and detection of cancer.
Chief executive David Darling said there were about 58 million people on the eastern seaboard of the US, and the proposed laboratory would be sited within a two-hour average drive of several large US cities.
Bladder cancer is the fourth-most-expensive cancer to treat and incurs the highest total medical cost per patient of all cancers. The company said its bladder test enables the early detection of bladder cancer from a small volume of urine.
Pacific Edge shares closed yesterday at 26c, up 2c.