Recce Pharmaceuticals

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Recce's Entitlement Offer is now live! Visit the page for instructions on how to participate

Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) reports it raised a total of around $11 million across its recent placement, entitlement offer and shortfall as it develops a new class of synthetic anti-infectives designed to address the urgent global health problems of antibiotic-resistant superbugs and emerging viral pathogens.

The capital raised will fund various clinical trials, building out Recce’s infectious diseases portfolio, geographical expansion, and for general working capital.

The company raised $8 million in the placement that was completed on 18 September, while a non-renounceable 1 for 26 pro rata entitlement offer raised approximately $2.7 million, before costs, as announced on 29 September 2023.

The company has confirmed that it raised a further $0.3 million from existing shareholders for the shortfall under the entitlement offer. The 697,727 new fully paid ordinary shares will be issued at the same price per share as the placement and entitlement offer, $0.44 per share and will rank equally in all respects with existing shares on issue.

Recce will seek approval for directors to take up a portion of the shortfall — representing approximately 250,000 shares or $110,000 — at the upcoming Annual General Meeting that’s expected to be held in early November.

Chief executive officer James Graham said, “We are extremely pleased to complete such a successful fundraising and thank investors for their support. This puts the company in an excellent position to progress its Phase 1/2 trials and to expand its multiple clinical stage infectious diseases portfolio.”

In the company’s recent annual report executive chairman John Prendergast provided insight into what to expect over the year ahead.

“In the coming 12 months, we expect to expand our clinical therapeutic programs with a number of new Phase 2 studies. We expect to see our manufacturing capability expanded and our production facility in Sydney capable of supplying our ongoing clinical trials.

“Our pipeline of programs and growing in-house capabilities ensure Recce maintains its leadership position in the global anti-infective space – a sector that has garnered increasing interest from international investment and pharmaceutical industries.

“Recce has a clear vision for the future and the team is focused on delivering on our priorities to bring innovative anti-infectives to market, delivering value to all our stakeholders and shareholders.”

Recce Pharmaceuticals raises further funds to progress trials from entitlement shortfall