Dunedin-based Pacific Edge Biotechnology is offering its existing shareholders a new issue of up to $5000 of ordinary shares each, potentially worth a total of $3 million.
In mid-2008 Pacific Edge reported that following clinical tests to validate bladder and colorectal cancer detection assays, it expected to have its first cancer diagnostic products on the market by late this year.
Pacific Edge listed in October 2003, raising $12 million in 25c shares.
Its year-rolling average share price to March has included a high of 13c and low of 7c and was this week trading around 7c.
ABN Amro Craigs broker Peter McIntyre said if each of its 618 shareholders took up the $5000 ordinary-share offer, the details of which have not yet been released, up to $3 million could be raised.
"It's likely to be used for strengthening the balance sheet to pursue its clinical trials," Mr McIntyre said.
Pacific Edge reported a full-year $1.9 million loss, ahead of a budgeted loss of $2.3 million last year, and in February last year raised a further $5.2 million through a special share purchase plan and habitual advisers. In its half-year report to September 30 last year, it booked a $1.36 million loss.
Pacific Edge management said in August last year extra capital would be needed to complete clinical trials and development work, and the board was considering whether to go back to shareholders, approach investment banks, or look at commercial agreements. The new offer is scheduled to be mailed to shareholders on March 26 and close on April 23.
