New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

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New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<h2>Pacific Edge Capital Raising</h2>
Pacific Edge (PEB) has announced a capital raise, totalling&nbsp;up to NZ$80m,&nbsp;to accelerate execution of its growth plans. The presentation provides a snapshot of the business and summary of recently achieved key milestones. There is limited new information aside from that it “continues to deliver month on month increases in revenue and test numbers”. As previously signalled, PEB is dual listing on the ASX – with trading to commence on Monday, 27 September 2021.
Forsyth Barr Limited is a Joint Lead Manager&nbsp;for the Placement&nbsp;and will receive fees in connection with this role. We are RESTRICTED.
Key details of capital raising
<ul>
<li>The offer: Consists of (1) a NZ$60m Placement, and (2) a Retail Offer of up to NZ$20m. Neither part is underwritten, and PEB reserves the right to increase the size at its discretion.</li>
</ul>
o&nbsp;&nbsp;The Placement price will be determined via a bookbuild process today, with the Retail Offer to be priced at the lower of the Placement price or five day VWAP (during the last five days of the Retail Offer period).
<ul>
<li>Net cash position: PEB reported a net cash position of NZ$16.2m at 31 August 2021. Assuming the full NZ$80m is raised, it will take PEB’s cash position to ~NZ$96m. Using historic burn rates provided by PEB (average cash burn of NZ$1.36m/month in the last 12 months), this equates to almost 6 years of cash on hand. However future cash burn will be materially impacted by the revenue ramp-up path and cost investment decisions.</li>
<li>Use of funds: To accelerate US market penetration (40-50% of funds raised), initiate &amp; develop a commercial business in South East Asia (10-20%), further leverage first mover advantage in bladder cancer (20-30%) and for balance sheet flexibility (20-30%).</li>
</ul>
Conference call – 11am NZ time
PEB will host a call at 11am today, via Zoom; <a href="https://us02web.zoom.us/j/85644419084?pwd=UlVrTXNwVU1LVzZjS01lTitMdVF2QT09" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://us02web.zoom.us/j/85644419084?pwd%3DUlVrTXNwVU1LVzZjS01lTitMdVF2QT09&amp;source=gmail&amp;ust=1632443753248000&amp;usg=AFQjCNFbUGUppXCsV5k6GYQD3rMLoDXZKQ" rel="noopener">https://us02web.zoom.us/j/85644419084?pwd=UlVrTXNwVU1LVzZjS01lTitMdVF2QT09</a>&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Key dates
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/231/311/original/image_59460118421632359497494.jpg?1632359497" class="editor-image img-responsive" data-smartkarma-image-id="231311"></figure>
Source: Forsyth Barr analysis, Company disclosure

Pacific Edge Capital Raising
Pacific Edge (PEB) has announced a capital raise, totalling&nbsp;up to NZ$80m,&nbsp;to accelerate execution of its growth plans. The presentation provides a snapshot of the business and summary of recently achieved key milestones. There is limited new information aside from that it “continues to deliver month on month increases in revenue and test numbers”. As previously signalled, PEB is dual listing on the ASX – with trading to commence on Monday, 27 September 2021.
Forsyth Barr Limited is a Joint Lead Manager&nbsp;for the Placement&nbsp;and will receive fees in connection with this role. We are RESTRICTED.
Key details of capital raising

The offer: Consists of (1) a NZ$60m Placement, and (2) a Retail Offer of up to NZ$20m. Neither part is underwritten, and PEB reserves the right to increase the size at its discretion.

o&nbsp;&nbsp;The Placement price will be determined via a bookbuild process today, with the Retail Offer to be priced at the lower of the Placement price or five day VWAP (during the last five days of the Retail Offer period).

Net cash position: PEB reported a net cash position of NZ$16.2m at 31 August 2021. Assuming the full NZ$80m is raised, it will take PEB’s cash position to ~NZ$96m. Using historic burn rates provided by PEB (average cash burn of NZ$1.36m/month in the last 12 months), this equates to almost 6 years of cash on hand. However future cash burn will be materially impacted by the revenue ramp-up path and cost investment decisions.
Use of funds: To accelerate US market penetration (40-50% of funds raised), initiate &amp; develop a commercial business in South East Asia (10-20%), further leverage first mover advantage in bladder cancer (20-30%) and for balance sheet flexibility (20-30%).

Conference call – 11am NZ time
PEB will host a call at 11am today, via Zoom; https://us02web.zoom.us/j/85644419084?pwd=UlVrTXNwVU1LVzZjS01lTitMdVF2QT09&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Key dates

Source: Forsyth Barr analysis, Company disclosure

Pacific Edge

Pacific Edge: Capital Raising