Dunedin-based Pacific Edge Biotechnology Ltd is forging ahead to commercialise its bladder cancer test, and its preferred funding option is to ask existing shareholders for some of up to $6 million estimated for the task.
Pacific Edge appears to be on the cusp of a commercial breakthrough after its listing on the New Zealand stock exchange almost six years ago.
It has since burnt through more than $12 million in research and development.
It focuses on developing non-invasive tests for the early detection of bladder, colorectal, gastric, melanoma, endometrial and prostrate cancers, with recent positive results from bladder and colorectal trials.
When contacted yesterday, Pacific Edge chief executive David Darling said several funding options for commercialisation - one for the US and another in New Zealand and Australia - were being considered.
His first preference was to raise funds from existing shareholders.
"We want to keep it [fundraising] local, in New Zealand; and foster support from our existing shareholders who have been so supportive," Mr Darling said.
As well as using some cash in hand, Pacific Edge could go to shareholders in April.
Any offer to raise cash would close by July or August, but Mr Darling declined to give further details yesterday.
Craigs Investment Partners broker Peter McIntyre said Pacific Edge's shareholder list reflected its likelihood and ability to raise more shareholder funds.
He estimated that since the company raised $3 million in its initial public offering and listing in October 2003, a further $22.6 million had come through "vigorous capital-raising programmes", including new share placements, redeemable share issues, rights issues, private placements and share allotments.
Pacific Edge's shares on issue had risen from 55.5 million at the listing date to 150.8 million yesterday.
Since August, its shares have doggedly gained in value from 15c to trade about 33c yesterday.
The company has also booked losses in each of the past five years, totalling more than $11.6 million and ranging from $1.8 million to $2.8 annually.
"Its share register is layered with wealthy and sophisticated investors who have been with the company some time," Mr McIntyre said.
Some of Pacific Edge's top 12 shareholders, from its list of 100, include Masfen Securities Ltd with a 10.7% stake, K One W One Ltd, 7.6%, Hypertech Medical Ltd, 5.3%, the University of Otago, 3.8%, Sinclair Long Term Holdings Ltd, 2.6%, Otago Innovation Ltd, 2.3%, and Hubbard Churcher Trust, 2%.
Mr Darling said the interim data analysis from a recent bladder cancer test, on almost 500 patients from New Zealand and Australia, revealed the test "has met its clinical end points and performs significantly better than our benchmark test", underpinning the move toward commercialisation.
