Pacific Edge Secures NZ$25.4 Million in Upsized Capital Placement

Pacific Edge Limited has successfully finalised an upsized capital placement, securing NZ$25.4 million from investors to bolster its balance sheet and support strategic initiatives in the United States market. The cancer diagnostics firm, listed on both the NZX and ASX, confirmed the completion of the placement on Tuesday, May 12, 2026, after experiencing significant demand that exceeded its initial funding targets. The company had originally sought a lower amount but increased the placement size to accommodate the high level of interest from institutional and sophisticated investors.

The placement was priced at NZ$0.17 per share, representing a 2.3% discount to the closing share price recorded on May 8, 2026. Following the successful completion of this phase of the capital raise, trading of Pacific Edge shares resumed on the NZX and ASX on Wednesday, May 13, 2026, after a trading halt that commenced on May 11, 2026. This capital injection is intended to provide the organisation with the necessary resources to maintain operations and pursue the re-establishment of coverage for its diagnostic tests in its primary market.

Financial Performance and Revenue Challenges

The capital raise follows the release of preliminary unaudited financial results for the 2026 fiscal year, which highlighted the significant impact of regulatory changes in the United States. For the year ended March 31, 2026, Pacific Edge reported that operating revenue decreased to NZ$11.5 million, a substantial decline from the NZ$21.8 million recorded in the FY25 period. This downturn was primarily attributed to the cessation of reimbursement for the company's Cxbladder diagnostic tests by Medicare in 2025.

The loss of Medicare coverage, managed by the administrative contractor Novitas, had a direct effect on laboratory activity. Key financial and operational metrics for the period include:

• A net loss of NZ$35.7 million for FY26, compared to a NZ$29.9 million net loss in FY25.
• Total laboratory throughput in the United States falling to 18,784 tests, down from 23,885 tests in the previous year.
• A 21.4% reduction in total US laboratory throughput year-on-year.
• Cash and cash equivalents totalling NZ$7.8 million as of March 31, 2026.

Despite the revenue challenges, the company has implemented cost-management strategies to preserve capital. The average monthly cash burn in the second half of the 2026 fiscal year was reduced to NZ$2.4 million, down from NZ$3.3 million in the first half. This represents a 27.7% reduction in the average monthly cash burn, reflecting efforts to streamline the organisation's cost base while continuing to support its core diagnostic services.