A second high-profile New Zealand businessman has taken up his existing shareholder option to increase his stake in Dunedin-based listed cancer detection company Pacific Edge Biotechnology.
In late March, Pacific Edge went back to shareholders asking for more cash, the third time since 2005.
The capital-raising venture is expected to raise between $2.5 million and $3.35 million, to be used to complete clinical trials on cancer detection products and further development work.
Existing shareholder Peter Masfen, a long-time large private investor and former chairman of the Montana group, has purchased a further 3.8 million Pacific Edge shares at about 9c each for a total $350,000, which, as part of the extra 20% of shares put on offer, maintains the stake of Mr Masfen and his wife at 10.9% of the company.
Similarly, in mid-May, Warehouse founder Stephen Tindall purchased his options in Pacific Edge for $312,000 to hold a stake of 8.61%.
Other "high-profile" shareholders include Allan Hubbard, of Timaru, and the University of Otago, which, according to ABN AMRO Craigs broker Peter McIntyre, provided the company with good access to capital, while the shareholders' uptake of options meant their stake was not diluted.
"Such a high-profile shareholder list is good for such a small company as they are able to take up the rights issue," Mr McIntyre said.
Shares in Pacific Edge, which listed in October 2003, raising $12 million in 25c shares, have been steadily trading down from 14c this month to around 11c yesterday.
• Pacific Edge reported a full-year $1.9 million loss, ahead of a budgeted $2.3 million loss last year.
