Up to 170 Pacific Edge investors could make a claim for a share of a $500,000 compensation package, following investigation and censure by the Financial Markets Authority (FMA).
For two separate periods of two to three days each in October 2013, Dunedin-based Pacific Edge delayed making public two major agreements with two large US health networks, and the FMA found the New Zealand sharemarket should have been advised ''immediately'' at the point of signing.
FMA senior adviser for media relations Shae Skellern was contacted yesterday and said the number of affected investors could be between 140 and 170.
The compensation offer process would determine the precise number of those eligible.
The formal ''settlement deed'' between Pacific Edge and the FMA does not ascribe a set amount per share to be paid, but instead outlines a formula to be used for a cash pro rata share of the $500,000.
For the month in question, cancer diagnostic company Pacific Edge's shares skyrocketed 250% in value, from 40c to $1.40, including after each of the US agreements were made public.
Investors who sold during the periods of delays are the ones to be compensated.
Ms Skellern said the $500,000 compensation package was the first time a payment had been obtained by the FMA specifically for a breach of ''continuous disclosure'' regulations, but it was not the largest compensation to investors for other regulatory breaches.
That was in 2011 when the Securities Commission secured a settlement with a compensation payment from Nuplex of $3.05 million.
The FMA had secured settlement payments in other cases, working with receivers on finance company cases including Strategic Finance, she said.
The affected Pacific Edge shareholders should expect to get a written compensation offer from Pacific Edge within 30 working days - by about the first week of July - and payment must be concluded within a further month.
As part of the settlement, Pacific Edge may offer shares instead of cash to investors owed more than $500, but the FMA said it had not endorsed the share offer option, encouraging shareholders to seek independent financial and legal advice on the type of settlement.
