Dunedin-based biotech company Pacific Edge - which has burned through more than $14 million of capital during the past six years - has announced a shareholder purchase plan to raise more funds.
The ordinary shares are offered in a tranche which must not exceed $15,000 per shareholder, but the company gave no indication of what total was being sought or for what it was earmarked.
The offer, which will be the fourth time the company has gone back to shareholders for more capital since 2005, and its terms and conditions will be mailed to shareholders early next month.
It will close on July 28.
Pacific Edge last week announced it had reached a "significant commercial milestone" after the successful completion of a prognostic clinical trial in Europe of a product to aid ongoing colorectal cancer treatments.
Shares in Pacific Edge remained stable around 24c-25c yesterday.
For the first full five years of operation, Pacific Edge delivered losses ranging from $1.88 million to $2.85 million, or a total $11.6 million.
For its year to March 2010 operations, it booked an after-tax loss of $2.52 million.
The company said at the time a "significant proportion" of its expenditure during the 2010 financial year was for the clinical trial of its bladder cancer detection technology, Cxbladder.
Chief executive David Darling said when announcing the full-year results the company had continued to write off all research and development expenditure, "until the point at which products or projects provide reasonable certainty of cost recovery".
It had made further "significant investment in intellectual property protection, product development and in the clinical trial for the company's bladder cancer detection assay".
