Stock exchange watchdog investigates Pacific Edge over disclosures

NZ RegCo looking into disclosures made about yesterday's capital raise. Photo / Supplied

Cancer diagnostic Pacific Edge has increased the size of its capital raise following strong demand from investors and will now seek to raise $100m instead of $80m initially sought.

But in a separate development the stock exchange watchdog has confirmed it's looking into disclosures made by Pacific Edge relating to Thursday's announcement.

NZ RegCo says it had already been talking to the company and the Australian exchange about information released two weeks ago.

Read More

• Pacific Edge to raise up to $80 million - NZ Herald
• Stock Takes: Red ink? What to expect from Synlait, Pacific Edge's awkward moment - NZ Herald
• Pacific Edge cancer test gains cover from US insurance giant United Healthcare - NZ Herald
• Rags-to-riches start-up: Pacific Edge CEO David Darling has the last word - NZ Herald

That announcement was about the firm's listing on the ASX, but also outlined plans to raise $70 million.

Pacific Edge said the information was incorrect, was posted inadvertently, and no money raising had been approved.

It said it was complying with rules of disclosing relevant information.

Regarding the earlier disclosures, NZ RegCo said: "The information published by the ASX arose from correspondence between those parties in the course of Pacific Edge's listing application. NZ RegCo's engagement resulted in the subsequent announcements made by Pacific Edge on 8 and 9 September, which aligned with the information provided to NZ RegCo."

Yesterday Pacific Edge announced an $80 million capital raising, which has now been extended to $100m.

"NZ RegCo will be further considering the capital raise announced yesterday in the context of those previous engagements," the watchdog said.

Pacific Edge shares traded as high as $1.58 on the NZX this morning.

New shares issued as part of a placement to investors were priced in a bookbuild process at $1.35, which represented a 5.5 per cent discount to the stock's average price across the last 20 days and 8 per cent below its market price prior to the trading halt.

Pacific Edge chair Chris Gallaher said the level of demand was an endorsement of the company's strategy and growth plans. "We are very pleased with the strong support we received from our long-term institutional investors and are delighted to welcome several high value global growth funds to the register," he said.

- additional reporting RNZ