Pacific Edge (PEB) was found to have delayed making two announcements to the stock exchange in October 2013, which the Financial Markets Authority (FMA) found was a breach of ''continuous disclosure'' regulations, and should have been made ''immediately'' to the market.
PEB's shares during the period in question rose from 40c to $1.40 and the compensation was for investors who sold during that period, estimated at between 140 and 170 by the FMA.
Shareholders entitled to compensation must claim it by 5pm on July 24.
PEB chief executive David Darling said under the settlement reached with the FMA, PEB had the option of offering shares as an alternative form of compensation.
''[However] PEB has decided not to do so. Accordingly, compensation will be paid in cash and not in PEB shares,'' Mr Darling said in a market statement yesterday.
PEB last week added the $500,000 to its previously announced full year loss, pushing it out to $11.22million.
Its fully underwritten $35.3million capital raising closes this week.
