Pacific Edge Targets $21M Capital Raise with $5M Share Purchase Plan

Capital Raising Amid Medicare Non-Coverage

Pacific Edge Limited, a New Zealand-based cancer diagnostics company, has launched a $5 million Share Purchase Plan (SPP) priced at $0.10 per share. This retail offer follows a conditional $16.1 million Placement announced in June, which is awaiting shareholder approval at the upcoming Annual Shareholders’ Meeting on 6 August 2025. The combined capital raising, targeting approximately $21 million, is designed to bolster the company’s financial position in the face of recent Medicare non-coverage of its tests in the United States.

Strategic Use of Funds

The proceeds from the SPP and Placement will extend Pacific Edge’s cash runway to support operations for over 12 months without Medicare reimbursement, a critical buffer as the company pursues re-coverage. Additionally, the funds will accelerate commercial adoption of its flagship Cxbladder Triage test in the US, leveraging its inclusion in the American Urological Association’s microhematuria guideline earlier this year. Pacific Edge also plans to continue generating robust clinical evidence to support coverage and medical policy development, while investing in innovation for in vitro diagnostic kits aimed at international markets.

Shareholder Participation and Offer Details

The SPP is open exclusively to eligible shareholders recorded on 11 July 2025 with New Zealand addresses, allowing each to apply for up to $50,000 worth of shares at the same price as the Placement. The company retains discretion to accept oversubscriptions and scale applications to accommodate demand. Shares issued under the SPP and Placement will rank equally with existing shares and are expected to be allotted on 13 August 2025, with trading commencing shortly thereafter on both the NZX and ASX.

Navigating Market Challenges

Pacific Edge’s Chairman, Chris Gallaher, highlighted the significance of the AUA guideline inclusion as a positive pivot point despite the setback of Medicare non-coverage. The company views the guideline as a catalyst to maintain and build commercial momentum in the US and beyond. The capital raising is a strategic move to ensure Pacific Edge can continue its growth trajectory without compromising its cost base or operational capabilities.

Outlook and Investor Considerations

While the capital raise provides a financial runway, the conditional nature of the Placement and SPP on shareholder approval introduces some uncertainty. Investors will be watching closely how the company navigates Medicare reimbursement challenges and whether clinical adoption in the US accelerates as anticipated. The offer also presents an opportunity for existing shareholders to avoid dilution and participate in the company’s next growth phase.