Recce Pharmaceuticals (ASX:RCE), which is developing a new class of synthetic anti-infectives, has secured a debt facility of up to around $30 million (US$20m) with $11.5m (US$7.5m) committed and a further $19 million (US$12.5 million) available subject to draw down conditions from global investment firm Avenue Capital Group.
Recce said the facility will provide non-dilutive growth capital to support its Phase 3 clinical trial activities in Indonesia and Australia for the treatment of Diabetic Foot Infections (DFI), Acute Bacterial Skin and Skin Structure Infections (ABSSSI), as well as broader commercialisation efforts across the ASEAN region.
Mark Lasry, Chairman and CEO of Avenue Capital Group, said, “We are pleased to support Recce Pharmaceuticals as it pursues the commercialisation of its novel anti-infective therapies. Recce has a differentiated platform technology, strong leadership, and strategic focus on high-burden regions that aligns with our philosophy of backing innovative companies with the potential for global impact.”
James Graham, CEO of Recce Pharmaceuticals, added, “This facility marks a significant step in strengthening our capital position at a critical juncture. With our lead candidate R327G now in registrational trials and targeting commercial launch in 2026, this strategic partnership with Avenue Capital Group allows us to advance our clinical programs while preserving shareholder value. Avenue’s support reinforces the commercial potential of our synthetic anti-infectives and their transformative role in combating antimicrobial resistance.”
The facility follows Recce's recent equity capital raising of $15.8 million exclusively among existing shareholders, bringing its financial position to pro-forma $27.5 million.