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- Release Date: 23/10/13 15:56
- Summary: RIGHT: PEB: PE Renounceable Rights Issue
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PEB
23/10/2013 13:56
RIGHT
REL: 1356 HRS Pacific Edge Limited
RIGHT: PEB: PE Renounceable Rights Issue
23 October 2013
Pacific Edge announces 2:15 pro-rata renounceable rights issue to boost
Cxbladder rollout
Pacific Edge (NZX:PEB) announces a pro-rata renounceable rights issue to
raise up to $20.5 million to further fund the roll out of its high performing
cancer diagnostic system Cxbladder in the world's largest health market, the
USA.
The 2 for 15 entitlement offer to all shareholders at NZ$0.55 is at a 16.6
per cent discount to the Theoretical Ex-Rights Price (TERP) implied by the
volume weighted average price of Pacific Edge shares traded on the NZX Main
Board between 23 September and 22 October 2013. Shareholders will be able to
participate in an oversubscription facility up to 100 per cent of original
entitlements. Any rights not taken up, or not able to be taken up, will be
sold in a back-end Shortfall Bookbuild to eligible investors.
Pacific Edge Chairman Chris Swann says the funds raised will provide funding
to implement the roll out of the US sales force in pursuit of achieving $100
million of commercial sales of Cxbladder in the United States within five
trading years.
"The Board is fully confident that the funds being raised will be sufficient
to cover operating expenses until Pacific Edge achieves profitability."
The new funds will also be used to further develop a suite of Cxbladder
products based for a number of clinical value propositions identified by
urologists in the extensive User Programs undertaken in the US and New
Zealand.
The Rights Offer allows all eligible shareholders to subscribe for 2 new
shares for every 15 shares held on the record date, at a subscription price
of $0.55 per new share. Shareholders who do not wish to participate in the
offer can sell their rights, which will be tradable on the NZX Main Board, or
do nothing.
Pacific Edge has appointed First NZ Capital Securities as Organising
Participant to its capital raising.
Pacific Edge Chief Executive David Darling says Cxbladder is gaining traction
in the US since it was commercially launched in July this year by the
Company's wholly owned subsidiary Pacific Edge Diagnostics USA (PEDUSA).
Tests from US patients are now being processed at the company's purpose built
and fully operational laboratory in Hershey, Pennsylvania which received CLIA
regulatory approval in March 2013.
"The sales and marketing teams are now actively marketing Cxbladder to
Integrated Healthcare Providers, Large Urology Groups and Urologists and are
focussing on building volume sales." In the last few weeks Pacific Edge has
also reached agreement with national provider FedMed to make Cxbladder
available to 40 million Americans who use its 5500 hospitals and more than
600,000 clinicians, and more recently, America's Choice Provider Network
(ACPN) which offers a medical network solution for more than 14 million
Americans.
In the USA, bladder cancer is the fourth most expensive cancer to treat and
incurs the highest total medical cost per patient of all cancers at
approximately US$200,000 per patient from diagnosis until end of monitoring.
In the US, bladder cancer is the sixth most prevalent (8% of male cancers and
2% of female). Approximately US$1 billion is spent every year in the US
screening one million new patients who present to clinicians with haematuria
(blood in the urine), a possible indicator of bladder cancer.
Cxbladder delivers benefits for patients from its easy to use Urine Sampling
System and for clinicians it is an efficient, accurate and a non-invasive
test that enables the early detection of nearly all carcinomas of interest in
the urinary tract. A multi-centre Australasian study of 485 patients peer
reviewed and published in the prestigious Journal of Urology in the US in
September 2012 demonstrated that Cxbladder outperformed the other
commercially available tests benchmarked in the study. In that large study at
a specificity of 85% Cxbladder saw 100 % of T1, 100% of T2, 100% of T3, 100%
of Tis and 100% of upper urinary tract cancers. Cxbladder also saw 97% of
high grade tumours.
Key Dates
The key dates* for the Rights Offer are:
Announcement of Offer 23 October 2013
Rights trading commences 5 November 2013
Record date for eligibility 7 November 2013
Dispatch of Offer document 11 November 2013
Rights trading ceases 21 November 2013
Offer period closes (5.00pm) 27 November 2013
Shortfall Bookbuild for entitlements not taken up 29 November 2013
Allotment date for shares under entitlement offer 4 December 2013
*These dates are subject to change and are indicative only.
A simplified disclosure Prospectus for the offer has today been registered
and will be sent to eligible shareholders on or around 11 November 2013.
- ENDS -
D Darling
Chief Executive Officer
Pacific Edge Ltd
Cell: +64 21 797 981
Ph: +64 3 4795 800
End CA:00242760 For:PEB Type:RIGHT Time:2013-10-23 13:56:41
