https://www.nzx.com/announcements/380594
Reminder to get your application in by 13 October for the SPP.
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https://www.nzx.com/announcements/380594
Reminder to get your application in by 13 October for the SPP.
There are many reasons... It may well just be Peacocking. To commit big business it helps to have a healthy balance sheet. + now is the time to hit the sales hard before a retreat back to pre Covid normality...
It does suggest that growth % is only impressive due to a low base though...
Has anyone gone to the trouble of calculating roughly how much existing shares will be diluted by? I don’t think I want to take full amount available but wouldn’t mind topping up to remain at status quo.
At the time of the "surprise" Cash Raise I suggested this was to simply secure funding for W/cap over the next few years, because I believe they are still a long way away from the meaningful commercial uptake the blind faithful here desperately want to believe. And simply that they would not secure that funding once Sept results are out. The faithful here wanted us to believe it had to be for some grand expansion, Asia, new labs, colorectal tests...sigh.
Don't let the story cloud the facts with this one, you are right to wonder about these things. Be careful.
In the health sphere, it's not entirely unusual to want to see healthy financials of those suppliers that you deal with. There would be a degree of nervousness in signing up to use tests from a company that looked like it was only just scraping by. These decisions are not taken lightly as health providers really can't tolerate any disruption to their supply chain, particularly on something that has single point sensitivity like specialised testing.
Wow 380 shares traded in ASX so far!! Aussie retail not interested or are not aware of PEB?
Listing day video for those interested - https://www.youtube.com/watch?v=TeaLO9w7SJc&t=1s
Good question.
“Approximately 59.3 million shares were sold in the Placement” https://www.nzx.com/announcements/379737
Assuming full participation in the retail offer of $20mil at $1.35. That would put it at another 14.8 million.
So in total an additional 74.1 million shares approximately.
At end of FY21 there were approximately 727 million shares issued. https://www.pacificedgedx.com/assets...eport-2021.pdf
So looks like approximately a 10% increase in the number of shares issued.
Thanks DK, have applied for 10% of my current holding
Bugger all volumes going through ASX and sp drifting back towards $1.35.
I hope PEB has not screwed the $80m CR up with allotting the additional $20m, undermining after CR buying interest.
My boldQuote:
Kaiser Permanente (KP)
KP started commercially using Cxbladder Monitor from December 2020, followed by Cxbladder Triage
from August 2021. Test numbers continue to grow, although momentum has been hampered by the
demands of Covid. This has impacted on patient numbers and the full electronic integration of the
Cxbladder process into Kaiser Permanente’s electronic medical records.
This to me is what the cap raise signaled. Eventual worth likely less of an issue than current value...
This is why I won’t partake in any capital raise from this company again. I might buy some more if I see some heavy growth in sales. If not growing well enough, we may see the price close to $1 again in the not too distant future.
Good luck to all holders and people involved in the Capital raise.
Although, if anyone had participated in the Cap raises of the past, then they would be sitting pretty now. Despite the ups and downs those of us who have kept the faith are being handsomely rewarded. For new investors it's a different analysis - get in now on the dip or wait for the next set of results. Depends on your risk/reward ratio. Good luck to all.
Disc. Holder.
While I think the long term forecast is positive I just don’t think that the increase in lab throughput and adoption by practitioners is strong enough to drive the SP in the short term. I do have a significant holding but for the reasons above, the trajectory is not strong enough for me to spend another $50k at this point IMO. The Market expectation may well exceed reality in which case the SP could easily drop back to the low $1.15/1.20 mark, until higher adoption numbers or a major medical facility uptake in the USA are confirmed.
Fair comment. I bought enough to keep my holding from being diluted but that was it. SP may have gotten ahead of itself, as it does sometimes, so no big deal if there's a pull back. In the near term it sounds as though PEB is flagging that things might have stalled a bit due to Covid, but beyond that I fall into the camp that thinks PEB has huge potential if things go its way. Who dares wins.
Or I could buy $50k worth at $1.15? balance!
And buy an even bigger xmas prezzie
Cap raise playing with SP knocking it back a bit from where it was heading 1.59+ is an unfortunate side effect of raising so much capital as there will always be those quick profit takers out for a short term buck. Holders are the ones who genuinely can see the trajectory and path PEB is currently on. This hasn't changed with some play in the SP. The positioning of the company and what they will now be able to use this large amount of capital for will excel PEB to the next level. SP at only a buck 50 will be seen as cheap as chips soon enough when its growth really kicks off. The world will soon learn to live with Covid, medical advancements in other areas will regain focus and traction. More positive news will follow with PEB entering and becoming established in US and other new markets. The success is yet to really be seen and realised. Some traders will play their swings, selling down as they have been to try and rebuy as close to 1.35 as possible. Some of those who buy at 1.35-1.4 will only be looking for a quick 10% so might see some resistance around 1.45-1.5 for a while until these small profit gainers clear out the way. Then once that volume has sold out SP will push steadily higher with more and more good news and traction to follow. It's still early days. Seems to be a common occurrence with large cap raises. The extra $20M thrown in didn't help seeing the slide from 1.59 to where it is now. But again depends on if short sighted 8-10% profits are desired or much larger profits. Patience will play out a good fortune to those with a steady hand. This will likely be NZ's next success story company. It has taken a while to get to where they are now, but the train has left the station. When ASX kicks in within the next 6 months once the dust has settled with Cap Raise, and PEB hits headlines more in Australia, SP will be a fast train. So holders don't be disappointed if see SP dip as it has recently, and maybe even stagnate there for a while which is only logical. Once flippers clear out SP will rally strong soon enough to follow. All aboard :)
Spot on Maxtrade. The PEB ship will come in - not this year - but the treasure is on board for those willing to wait. A 10% gain on a quick trade (less tax of course) will look pathetic compared with what is yet to come.
The current wobbling of the SP doesn't look great but we've seen this kind of action many times before. Those trying to push the price down to score a lower entry into the SPP have left their run a bit late and it will be all over tomorrow. There's no sweat on my brow from the current SP action.
Patience Grasshopper!
The newsletter had a pinch of downbeat tone to it for the numbers this FY. Atleast we will be able to see the publication on Singapore trials in a few months.
Last day for getting your SPP applications in if you are interested in getting more shares.
Sp action this morning suggests ‘SPP’ application regret as applicants (having applied) bail out of equivalent existing stock to lock in whatever profit is left in the SPP price of $1.35?
Must admit I thought of doing the same on Monday but what the heck, hardly worth the effort now.
$1.35, there it is!
Slightly annoyed with Sharesies as they communicated they needed applications in by 11am monday rather than today. They corrected this about an hour after I made my application and I'd be hesitating now tbh...
Yeah very poor management of the CR. You would think those in management would have a little better understanding of how markets work. They should have left the demand there which would have netted the same results with inflowing demand while pushing the SP and value of the company up simultaneously. The extra $20M released should have been left to the retail offer. Now there will be a drag on the SP to get rid of those extra traders that bought in at $1.35 just looking to make money on the post CR bounce and not actually investing in the company itself and it's future. Anyway it's probably just slowed SP progression and momentum down until the mud gets kicked off it's boots. I wouldn't be surprised if we see 1.30 tested as quick profit takers realise they may not be getting their quick profits that soon after all. Which obviously won't be the best for the instos and retail investors who bought in at 1.35, as the 5 day average won't be any lower even if it were to drop to 1.30 today. I guess those who held off on the offer were waiting to see if would drop below 1.35. If does touch down to 1.30 I would suspect to see a surge of buyers enter. Knowing will likely quickly bounce back uo 1.35 following a short dip. Hover for a while then slowly trudge it's way through the mud north into clearer waters again.
Yep they screwed up in terms of looking after shareholders and SP by throwing an extra 20 million on the table. But like you say good for the company to have those funds to put to work. But only really applicable to longer term holders rather than traders. The battle of the short-term traders versus true believers in PEB's medical advancements and where they are heading. I wish investing was still actually investing in a company. It's almost like traders need to have their own division in a company separate from actual investors in the company. I know that is not realistically achievable but wouldn't that be great! Stocks in company shouldn't be seen as a quick buck or gambling, it should be investing in a company and it's future.
I don't look at it that way myself.
Traders can add depth & liquidity o a stock and there have been many a time when I have bought cheap and plenty from traders.
The answer for PEB & similar companies to avoid volatility is to access the private equity market but that's easier said than done for high risk biomedical & biotech companies.
It was written...
I don't see the raise as a screw up at all... The board acted in the best interests of the Company. Revising the placement price upward was made possible by eager investors. You'll likely find about the same number of shares were issued but the difference in strike price netted more capital... If punters coughed up $$ to early that's an issue for the punter, not the company. It's one of the few instances where shareholders interests and the companies interests don't align. The whole point of having a listed company is to access capital. Job well done
I'm expecting more softening to come. That's a hunch, no agenda. I've a small holding to keep my interest...
Yeah not a lot of support on the buy side of ASX currently. Surely won't see a fall back to 1.2 AUD though?? If so would likely find a bottom there and be very brief followed by a rally to follow suit then?
Down 7.5% on ASX currently. Who knows, maybe it will test 1.2 AUD by tomorrow?? Will be prepared for a rally if there is a bit of a brief sell off dipping to this level.
It is the way of things...I hope that all investors came into it with the expectation that the SP would retreat to the CR price, even if for a short time. It doesn't particularly help that markets are a bit wobbly right now. If there is $100m+ (we'll see where the SPP lands up) worth of stock purchased at $1.35 then that *should* provide a stable base for the SP. It is on the company now to deliver against future growth targets/aspirations with war-chest in hand. I disagree with the musing that this capital is cover for w/cap only, given historical cash-burn rates.
It needs confirmation of test throughput. Until uptake momentum is proven it's all pie in the sky. The latest release stated there are issues so... expect a level of disappointment and be surprised if testing #'s have any hint of going exponential. Not the other way around. Would you place a win bet on a foal if it has potential to only pay 90c to the dollar?
Does anyone know when the retail shares allocation will de dispersed and likely start seeing some volume of them getting traded (flipped) out on market??
My applications been accepted, nothing close to the maximum. Sharesies said should be there by end of October which isn’t very specific.
Doubt there will be flippers from the SPP - it's like a rights issue to conviction shareholders adding to their position.
The greater likelihood is the $20m extra shares issued by PEB being sold out as they are 'surplus' to intention. Anyone bidding for stock in a placement usually put in more in expectation of being scaled back - except PEB decided to give them all they wanted!
Note the sp on ASX dipped below $1.35 yesterday?
Thanks Balance. No sign yet of that extra $20M (surplus) being on sold on yet, or would that likely happen off market and not be reflected in the current market depth? Or would that potentially be yet to come after the SP is monitored to see what it is doing after the retail offer shares are allotted?
Exactly Balance. Its all about execution from here. Just sit tight and suck up the sad times and rejoice the good times..
Retail offer 300% over subscribed. https://www.nzx.com/announcements/381166
PEB investors:
https://i.kym-cdn.com/photos/images/...64/241/9e9.gif
From now on PEB should not have any excuses of not executing it's growth strategy well. It has already had its best cash position ever.
That is a pretty amazing outcome and means PEB could have raised a total of $160m if they had accepted all applications.
Anyway, they have raised $103.5m from this exercise, so let's hope they invest it wisely and we see some exponential growth in business activity over the coming year.
Maybe we soon might also see some of the disappointed punters investing their returned cash in buying on-market and giving the SP a northward nudge.
I'm sure there is an interesting year ahead for all PEB holders.
Pretty good vote of confidence from Institutions and retail investors alike. We can't all be wrong surely?:)
The wording is a bit confusing to me:
“The acceptance of the oversubscription allows all applicants to receive the minimum of their application or their pro-rata allocation up to the NZ$50,000 maximum under the Offer”
What are others interpreting it as? That we will get 23.5/80 of our applications? ie just under 30% of our application?
Last year Auckland Airport offered something similar.
My brother and I had equal shares (thanks Dad!)
He applied for the maximum, me less.
I got what I asked for (and as it turned out I could have applied for twice as many.)
The Kid brother applied for the maximum, got more than me... then a refund for the extra.
The offer document had this:
"If Applications are scaled, PEL will scale back the number of shares to be allotted under this Offer to each applicant having regard to the number of shares held by the applicant at the Record Date and otherwise at its discretion (see clause 8 of the Terms)."
So the more shares you had, the more you will get compared to someone else who applied for the same amount...
Although they can also do what ever they want.... :-/
Seems like a pretty solid base settled in at 1.35 as expected. Good to see hasn't been any large volume sell off of excess after SPP. Will be interesting to see what happens tomorrow with the allotment, and the next couple of days to see if there were many traders who were just hoping for a pop in SP that might put excess shares on market after the allotment. Might see sell volumes increase around the 1.4-1.45 level cashing out if so. If it does think it would be a pretty safe bet that 1.35 will hold even if there is some downwards pressure momentarily.
That would be a poor strategy if that's what you are waiting for. Substantial positive news will just re rate the SP way above the point it finished at prior to the release of that news....with no trades , (or a lucky few catching those who had not withdrawn a sell price) in-between. With a stock like this best to buy now if you really believe that positive news is on its way and pick up all of the increased value.
The other side of this is what if an announcement does not match market expectations? Thats the time to hold cash to buy at a lower price off panicking short term traders as long as you have a positive long view.
My allocation now appears in my LINK account, (I wasn't notified about it).
Received 75% of my application.
I didn't apply because my weighted average cost is 46 cents so I'm sitting with what I have and waiting for the next piece of good news.
Did you get 10.16% of your current holding? That is what I got by the looks of it. (on LINK account) Must be the pro-rata rate. Meanwhile, non investors got more and make a quick killing and mess with our share price. This seems to have happened so often recently with share issues that disappoint after managing your funds to have cash on hand just to get refunds back.
Still waiting for sharesies to come through but it seems that I'm getting what I asked for.
I'm shocked to see that the excess has been refunded already! Very prompt.
I did get what I asked for, rounded down 5c to make it a whole number of shares.
Yes, I also got 10.15% of my current holding.
Given people seem to be getting the lesser of their application amount or roughly 10% of their holdings as the allocation.
That would make sense for you Ben. https://www.sharetrader.co.nz/showth...l=1#post916248
Lucky guess eh!
I asked for 5000 shares and I guess it must have been too many since I got ony 500.
Ditto 10.16% of original holding... Cheers DonkeyKong pretty much on the money with your 10% calculation ..... so i have little extra tied up waiting for a refund
S Hers who missed out on their SPP pouring the refunds back into the market at current prices shows good belief in the companies future imo.
Looks like DD got his share @ $1.35
Absolutely! Can't blame him.
Sharesies has finally finished processing, full amount now showing. Now we wait for PEB to do it's thing :)
Encouraging to see the sp recovering from the $1.35 low reached last week - looks like the severe scaling back of the SPP has worked well, as opposed to the over allocation of stock in the $80m placement.
Wonder how many of the $60m scaled back bids in the SPP are buying on market.
Balance, if the Pro rata rate was 10% of holding then DD could have got his allocation through the Brokerage placement (open to any clients of the Lead brokerages with >450K shares).. Just saying
The new boss sounds like a top man!
Yes indeed. A highly appropriate pedigree.
This seems to be a great get for PEB. Certainly has the technical chops to guide PEB.
[QUOTE=Count von Count;920940]This seems to be a great get for PEB. Certainly has the technical chops to guide PEB.[/QUOTE
Yep, this looks like a great appointment.
Peter Meintjes comes in with the benefit of the big bag of loot gathered up recently by DD, and with his knowledge, skills and experience is sure to make wise decisions on where those dollars should be invested.
I'm sure it wont be too long before we see some real runs on the board for PEB but we would probably all be pretty happy if he simply started by replicating his previous history of generating compound annual revenue growth of 75%!
Thanks to DD for getting the company ready for launch (aiming for the moon was a much bigger project than most of us realised) and best of luck to Dr Meintjes for a successful take-off.
Exciting times ahead IMHO.
Bonne chance to holders.
with COVID here for good and continued strains on hospital capacity globally hopefully we get high adopation rates sooner rather than later and a reason to stay long
Hmm.... wonder what's up with PEB? Reasonable bit of press here but SP down 4c in a bit of a sell off http://nzx-prod-s7fsd7f98s.s3-websit...573/358935.pdf
Wouldn't be surprised if we see SP drift back to the Cap Raise 1.35, maybe even slightly below before 'bargain hunters' top up holdings and get the next leg up after that. If touches on 1.35 or bit below then a positive update is announced then we will likely see previous highs reached again. Seems pretty normal activity for growth companies after cap raises.
Filtering out those who were just in it to make a quick buck off the Cap Raise. Often happens, happy with their 5-10% gain. Once those traders clear out the way would suspect SP will find a lot of support ~1.35 (maybe briefly touch a little lower), then will be able to take natural course for longer term investors to then push SP higher with more positive updates in the works. Not really a surprise or anything to be concerned about that it has settled back to ~1.35.
No worry. I expect the company to perform better now that they have appointed an experience new CEO. I would be interested to know what the new CEO is going to do with the $100m in the bank and how is he going to grow the business to ensure that the EBITDA is positive. Hopefully, they will disclose all that on 25th Nov when they announce the half year results.
Yes, I am looking forward to the results.
Exactly one month before Christmas and PEB deliver their half year result today.
Will this be an early Christmas pressie for all those who tossed $100m into the company's bank account recently - or another announcement that Santa and his team have been delayed by Covid - again?
I sincerely hope there wont be too much disappointment for investors when the package is unwrapped this morning.
PACIFIC EDGE RESULTS FOR SIX MONTHS ENDED 30 SEPTEMBER 2021
Pacific Edge reports continued strong revenue growth despite continuing
impact of Covid-19
Unaudited results for the six months ended 30 September 2021 (1H22)
Summary of performance for the period (% changes compared to prior
comparative period (pcp)):
o Total revenue increased 66% to $6.7m
o Operating revenue from test sales increased 62% to $5.4m
o Total Laboratory Throughput increased 62% to 11,136 tests
o Commercial Test volumes increased 64% to 9,192 tests
o Cash Receipts from Customers increased 110% to $5.4m
o Total operating expenses increased 41% on pcp to $15.7m
o Net Loss After Tax increased 27% to $9.0m
o Net cash, cash equivalents and short-term deposits were $91.6m (which
excludes the $23.5m raised in the Retail Offer completed in October 2021)
o Growth in the US sales force from 16 to 28 (+75%) and the addition of two
new sales territories
o Publication of clinical evidence key to supporting use of multiple
Cxbladder products and Pacific Edge's Patient In-Home Sampling System (PIHSS)
o Conducted successful $103.5m capital raise and dual listed on ASX
o Well positioned to capitalise on commercial milestones as Covid-19
restrictions ease, with a strong balance sheet and scaled up operations in
the U.S.
Every one happy then