Pacific Edge Launches NZ$20 Million Capital Raise

Pacific Edge today announces an offer to raise NZ$20 million. The offer is to consist of a placement of NZ$15 million of new ordinary shares to be offered to selected investors and an offer of NZ$5 million of new shares to retail investors, by way of a share purchase plan, with an ability to accept over subscriptions in both the placement and retail offer at Pacific Edge’s sole discretion.

The share issue is priced at NZ$0.10 per share, which is at a premium to the 20-day volume average weighted price (VWAP) and is expected to be well supported by key existing institutional shareholders. It is aimed at ensuring Pacific Edge has the cash reserves to capitalize on its recent clinical and commercial milestones, grow in non-Medicare channels and regain Medicare coverage of its tests. Medicare coverage of the company’s tests ceased after the ‘Genetic testing for Oncology; Specific Tests’ (L39365) Local Coverage Determination became effective on 24 April 2025.

The capital raising comes as the company announces a resilient financial performance for the year to the end of March 2025 (FY 25). The details of the FY 25 financial results are covered in a separate announcement to NZX and ASX today. 

CASH RESERVES NECESSARY FOR RECOVERAGE AND COMMERCIAL MILESTONES

Pacific Edge’s capital raising is aimed at providing it with the cash reserves to:

• Extend cash runway to support operations for over 12 months without Medicare coverage and reimbursement, or reductions in its cost base, while pursuing re-coverage¹
• Accelerate adoption of Triage in the US with AUA Guidelines as a tailwind for sales, marketing and reimbursement
• Continue clinical evidence generation in an AV, CV and CU framework for coverage, guidelines and medical policy for Triage Plus and Monitor Plus
• Invest in innovation and product development for IVD kits to support entry into international markets in a decentralized deployment model

Chairman Chris Gallaher said: “Inclusion in the AUA guideline has allowed the company to view the non-coverage determination differently and we have a strong desire to use those guidelines to build on the commercial momentum we’ve already established. The robust evidence emerging from our clinical evidence program is shifting clinical sentiment towards the broader adoption of our tests in the US and further afield. We are determined not to lose that momentum, and it is for this reason we have today launched a NZ$20 million offer of new shares.

“The new capital will support the company and its operations for over 12 months, giving Pacific Edge the ability to grow testing volume as we work to regain coverage through planned Medicare reconsideration requests and challenging the non-coverage of Cxbladder Triage through the Medicare appeals process.

“All of Pacific Edge’s Directors and senior management intend to participate in the equity raising. We encourage you to support this offer.” 

Pacific Edge Chief Executive Dr Peter Meintjes said: “Pacific Edge has an opportunity to entrench its first-mover advantage and the moat we have created around Cxbladder Triage given its inclusion in the AUA microhematuria guideline.

“We are already rapidly migrating clinicians from Detect to Triage and are seeking to appeal all Triage tests through either the Medical Appeals Process or through “external review” for commercial payers. The capital we are seeking today will make this possible, while we work ceaselessly to regain Medicare coverage and reimbursement for our tests.

“Additionally, this capital will enable Pacific Edge to sustain our planned investments in the clinical evidence generation for Triage Plus and Monitor Plus – the future product portfolio of the company. Lastly, it will also support product innovation to simplify Cxbladder into IVD kits as part of a decentralized strategy for international markets. We encourage shareholders to support us to take advantage of these opportunities.”

Further details of the capital raise have been included in a capital raising presentation also released to the NZX and ASX today.

OFFER DETAILS

TIMETABLE

This timetable is indicative only and subject to change. The company will, in due course, send shareholders formal notice of the meeting at which shareholder approval to the Placement will be sought. The company will provide details of the record date, and offer period, for the Retail Offer on or before sending the notice of meeting to shareholders.

Pacific Edge Capital Raising Presentation

Cleansing Notice

Corporate Action Notice

ASX 3B - Proposed Issue of Securities

¹ Assuming at least NZ$20 million is raised in the capital raising to add to net cash of NZ$22.6 million at 31 March 2025 and an average monthly cash burn of less than NZ$2.6 million.

² Volume weighted average price on the NZX for the period 2 May 2025 to 29 May 2025

³ The Placement will also be conditional on all necessary regulatory approvals. In this regard, the company intends to seek a waiver from NZX Listing Rule 4.19.1 to permit the allotment of shares under the Placement after shareholder approval is obtained.

⁴ The Board reserves the right to extend the Retail Offer to Australian resident shareholders, subject to obtaining any necessary Australian regulatory relief.