Recce Pharmaceuticals (ASX:RCE) has announced a significant capital raise to support Phase 3 topical clinical trials in Indonesia and Australia.
The capital raise is comprised of placement to an Australian-based private investor to raise $5 million via the issue of approximately 17.9 million new fully paid ordinary shares and a pro-rata non-renounceable entitlement offer of one new share for every six existing fully paid ordinary shares held by eligible shareholders to raise up to a further $10.8 million.
The company said the raise proceeds will support Phase 3 trials of its patented, broad-spectrum, synthetic polymer anti-infectives. It said additional proceeds will be allocated to other programs the company is currently developing.
Recce CEO James Graham said, “We are delighted to receive the further support from an existing Australian-based shareholder and are pleased to launch an entitlement offer to all shareholders to acquire new shares at the same price as the placement. Proceeds from the capital raising will be used to support a Registrational Phase III clinical trial for Diabetic Foot Infections in Indonesia and a Registrational Phase III for ABSSSI across Australia, following a recently announced Phase II ABSSSI clinical study achieving all endpoints.”
Recce Chairman, Dr John Prendergast, added, “This capital raise supports a critical step forward as we commence our Phase III trial. Given current share levels and the anticipated trial timeline, we believe Recce offers strong underlying value. The outcome of this trial represents a potential inflection point for the Company, with the opportunity to advance a new standard of care and improve outcomes for patients. We look forward to keeping shareholders updated as we progress.”