Pacific Edge launches capital raise of NZ$24 million
11/05/2026 08:30 NZST, OFFERP
Cancer diagnostics company Pacific Edge (NZX, ASX: PEB, the ‘Company’) today announces an offer to raise up to NZ$24 million at NZ$0.170 per share consisting of a placement of NZ$18 million new ordinary shares to eligible investors and an offer of NZ$6 million new shares to retail investors with an ability to accept over subscriptions.
The capital raising is aimed at ensuring Pacific Edge has the resources and capacity to regain Medicare coverage, achieve reimbursement for its tests, and to position the business for growth.
In conjunction with the capital raising, Pacific Edge is also announcing unaudited financial information for the 12 months to 31 March 2026 (FY 26). That information shows a reduction in revenue due to Medicare ending reimbursement of Cxbladder following the 2025 non-coverage determination, but substantial progress to contain costs in the business to manage the Medicare uncertainty and preserve cash.
UNAUDITED PRELIMINARY FY 26 FINANCIAL INFORMATION
FY 26 operating revenue fell to $11.5 million from $21.8 million in FY 25 after the Medicare non-coverage determination saw a 21.4% reduction in US total laboratory throughput (TLT) to 18,784 tests from 23,885 tests in FY 25. The fall in US volumes was amplified by the disruption of transitioning US customers from Cxbladder Detect to Triage and the challenges of selling a product not covered by Medicare. APAC volumes for FY 26 increased 7.9% to 5,406.
Pacific Edge has made good progress throughout the year to manage its costs given the Medicare uncertainty. It has taken these steps recognising the need to balance costs against protecting the core assets of the business to preserve the Company’s ability to scale commercially after coverage is regained.
Total expenses fell to $49.3 million from $54.6 million in FY 25. Capital conservation initiatives saw a 27.7% fall in average 2H 26 monthly cash burn to $2.4 million per month from $3.3 million per month in 1H 26. The net loss for FY 26 increased to $35.7 million from $29.9 million in FY 25.
Cash and cash equivalents on 31 March 2026 were $7.8 million against $22.1 million on 30 September 2025 and $22.6 million on 31 March 2025.
Further commentary on this unaudited FY 26 financial information is set out in a presentation released to the NZX and ASX today. Pacific Edge intends to release its audited FY 26 financial results on Monday, 25 May 2026.
EQUITY RAISE TO CAPITALISE ON COMMERCIAL MILESTONES
Pacific Edge expects Novitas to release a draft Local Coverage Determination (LCD) for hematuria evaluation, that includes coverage for Triage, and potentially Triage Plus, any time before September 2026. This expectation follows a Contractor Advisory Committee (CAC) meeting in the US, hosted by Novitas on 19 February 2026, that provided an evidence-based mandate for the coverage of urine-based biomarkers, citing Pacific Edge’s peer-reviewed Cxbladder publications.
A new LCD for hematuria evaluation would likely distinguish hematuria patients as eligible for Cxbladder Triage testing from the cancer patients in the non-coverage LCD ‘Genetic Testing in Oncology: Specific Tests’ (L39365) effective since April 2025. If Novitas issues a draft LCD, Pacific Edge will engage with Novitas to seek reimbursement on a claim-by-claim basis for patients making this distinction supported by medical necessity documentation for Triage and potentially Triage Plus. Reimbursement would assist with increasing revenue and reducing average monthly cash burn below the current target of NZ$2.5 million per month for FY 27 (reduced from an average of NZ$2.85 million per month in FY 26).
The publication of a draft LCD is followed by a ‘notice and comment’ period (minimum of 45 days), before Novitas addresses comments and finalizes the LCD. Once a final LCD is published , it will take a further minimum of 45 days for the final LCD to become effective. Final coverage policy from Medicare is expected to remove barriers to establishing medical policy with commercial payers and unlock greater revenue from them.
Reflecting the significant potential and uplift in the prospects for Pacific Edge that will follow a positive Medicare determination, the Company is today launching its capital raising. The new equity is aimed at providing Pacific Edge with the resources to:
- Strengthen its balance sheet to support ongoing operations and growth;
- Support the Company to achieve Medicare re coverage;
- Continue evidence generation; and
- Continue product development and innovation.
Chairman Simon Flood said: “Pacific Edge is on the cusp of a commercial inflection point. Backed by robust clinical evidence, the endorsement of our tests in clinical guidelines, and growing momentum in clinical opinion, we have firmly established ourselves as the first mover and market leader in bladder cancer diagnostics.
“The new capital we are seeking today will allow us to consolidate this position. It will support the Company and its operations to regain Medicare coverage and assist our move towards the broader adoption of our tests by commercial payers in the US and further afield. We are determined not to lose that momentum. All of Pacific Edge’s Directors intend to take part in the equity raising. We encourage you to support this offer.”
Pacific Edge Chief Executive Dr Peter Meintjes said: “We have an opportunity to entrench our first-mover advantage in the use of urine biomarkers, and the moat we have created. This position will be entrenched with a new LCD for hematuria evaluation, that includes coverage for Triage and potentially Triage Plus.
“The capital we are seeking today will set a clear path to reimbursement for our tests after the receipt of the draft LCD, support continued investment in our clinical evidence and invest in product innovation. We are excited by the growth we see ahead, and we encourage shareholders to support us to take advantage of these opportunities.”
Further details of the capital raise have been included in a presentation also released to the NZX and ASX today.
OFFER DETAILS:
Offer size and structure
- An equity raising, comprising:
- A NZ$18 million Placement, equating to 10.1% of Pacific Edge’s current market capitalisation
- A NZ$6 million Retail Offer (with the ability to accept oversubscriptions at the Board’s discretion)
Placement offer details
- The Placement Offer Price will be NZ$0.170 per share representing:
- 2.3% discount to the last closing price of NZ$0.174 on 8 May 2026
- 2.0% discount to the five-day VWAP of NZ$0.17351
Retail Offer details
- Pacific Edge is offering up to NZ$6 million of newly issued ordinary shares (with the ability to accept oversubscriptions at the Board’s discretion) to Pacific Edge’s eligible existing shareholders resident in New Zealand (up to a maximum of NZ$50,000 per shareholder) under a Retail Offer (predominantly structured as a share purchase plan)
- The Retail Offer will be priced at the Placement Price (being NZ$0.170 per share)
Commitments
- Pacific Edge’s Chair, Simon Flood, intends to apply for NZ$500,000 of shares under the Placement
- All other Pacific Edge directors also intend to participate in the Offer
Ranking
- The new shares to be issued under both the Placement and Retail Offer will on allotment rank equally in all respects with Pacific Edge’s existing ordinary shares on issue
Non underwritten
- Neither the Placement nor Retail Offer are underwritten
TIMETABLE
Placement
- Placement conducted under trading halt - 11 to 12 May 2026
- Announcement of the Placement results and trading halt lifted on the NZX - 13 May 2026
- Settlement, allotment and trading of Placement shares on NZX and ASX commence - 15 May 2026
Retail Offer
- Record date - 7:00pm (NZST) on 8 May 2026
- Retail Offer opens and documentation sent to eligible shareholders - 14 May 2026
- Retail Offer closes - 28 May 2026
- Announcement of results of Retail Offer - 3 June 2026
- Settlement, allotment and commencement of trading of Retail Offer shares on NZX - 4 June 2026
Released for and on behalf of Pacific Edge by Grant Gibson Chief Financial Officer.
Pacific Edge is holding a conference call for investors analysts and the media at 11.00am (NZST). This investor briefing will be available via webcast at the following link: www.virtualmeeting.co.nz/pebic26 or by phone on the following toll-free numbers:
Conference ID: 2639914
Australia - Toll (Sydney) +61 2 8088 0946
Australia - Toll Free +61 1800 571 226
New Zealand - Toll Free 0800 450 012
New Zealand - Auckland +649 887 4636
USA & Canada - Toll-Free (800) 715-9871
United Kingdom - Toll-Free +44 800 260 646
For more information:
Investors
Dr Peter Meintjes
Chief Executive
Pacific Edge
P: 022 032 1263
Media
Richard Inder
The Project
P: +64 21 645 643