Recce Pharmaceuticals (ASX:RCE) has announced it has received firm commitments to raise $4 million through a placement of 10 million new fully paid ordinary shares at $0.40 per share and has launched a Share Purchase Plan to allow eligible shareholders to subscribe for up to $30,000 each on the same terms to raise up to an additional $4 million.
Recce is developing a new class of synthetic anti-infectives, including R327, R435, and R529,
Recce said the placement was well supported by new and existing institutional, sophisticated, and professional investors and that proceeds will be used to strengthen the balance sheet for commercial licensing with a leading Middle Eastern pharmaceutical company, fund ongoing clinical trials, support Investigational New Drug enabling activities, and provide general working capital.
Chief Executive Officer James Graham said, "We are delighted with the support of our capital raising from our existing shareholders and welcome new shareholders to our register. The capital raising comes at an exciting time for the Recce business, having recently signed a non-binding term sheet with a leading Middle Eastern Pharmaceuticals Company, and ahead of interim data readouts in Indonesia, which is a positive step towards the potential commercialisation of R327G. The company has many key milestones over the next 12 months and we look forward to keeping shareholders up to date on our progress. We acknowledge and appreciate the support of our retail shareholders. As a Board, we are pleased to be able to offer the ability for shareholders to participate in the Company’s capital raising activities on the same terms as the Placement through the Share Purchase Plan."
Under the offer, participants in both the placement and the share purchase plan will receive one free attaching unlisted option for every two new shares issued, with an exercise price of $0.60 per option, expiring on 30 June 2027.
Upon valid exercise of each attaching option, holders will receive one fully paid ordinary share and two unlisted piggyback options with an exercise price of $1 expiring on 30 June 2028.
Post-offer, the company said it expects pro forma cash liquidity of approximately $29.5 million and anticipates additional funding through an estimated R&D rebate, a potential non-dilutive R&D advance, and a possible further drawdown under an existing debt facility.
