Pacific Edge revises annual loss to include compensation payment for rule breach

Wednesday 24th June 2015

Pacific Edge, which commercialised a non-invasive test for bladder cancer, revised its annual loss to include a provision for a payment to shareholders following a rule breach.

The Dunedin based company revised its net loss to $11.2 million for the year ended March 31, from the previously reported loss of $10.7 million, to include provision for payment of a $500,000 settlement reached with the Financial Markets Authority, it said in a statement. The compensation payment to shareholders follows an investigation by the FMA that found the company probably breached NZX listing rules on continuous disclosure.

The regulator issued a public warning to Pacific Edge after investigating delays in disclosing new US contracts in 2013. The compensation payment will go to shareholders who sold the stock in the window between the company signing the contracts and making an announcement to the NZX. The shares soared as much as 250 percent in little more than a week following the company's October 2013 announcements.

Shares in the company last traded at 63 cents and have shed 25 percent so far this year.

BusinessDesk.co.nz

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