Pacific Edge has gone back to shareholders for another $20 million, which it said would tide it over until its cash burn ends.
The bladder cancer test maker said it would raise $7m at 15 cents per share in a placement to institutional investors and customers of local brokers, which was fully underwritten by Forsyth Barr and Jarden. That's a discount to the 16.5 cents the shares closed at yesterday. Trading was halted for the placement.
Pacific Edge said it would then raise a further $13m in a 1-for-4.25 pro-rata renounceable offer at a steeper discount of 10 cents per share.
The funds raised would support the commercial roll-out in the US, New Zealand, Australia and South East Asia, with the US$1.2 billion ($1.8b) North American market still the top priority. Pacific Edge said that would tide it over until it broke even on a cash flow basis.
"The board's focus remains on cash and cash management and ensuring the resources and capital are in place for Pacific Edge to realise its potential," chair Chris Gallagher said in a statement.