Recce Pharmaceuticals Ltd (ASX:RCE) is aiming to complete a capital raising of $15.8 million to funds its clinical trials in Indonesia and Australia through a $5M Placement to a private investor and $10.8M Entitlement Offer to shareholders.
The Placement involves a commitment from a private investor based in Australia, and the issue of around 17.9M new fully paid ordinary Recce shares priced at 28 cents each, for a total of $5M.
Alongside this, the company has launched an Entitlement Offer of 1 new share for every 6 existing fully paid ordinary Recce shares held by eligible shareholders, with the price being the same as the placement, and with the goal of raising $10.8M.
Recce plans to use the Placement funds to drive completion of 1 of its Phase III topical clinical tests, while funds from the Entitlement offer will go towards the progression of other development programs.
The former relates to the Phase III DFI Registrational Topical Clinical Trial in Indonesia – which is expected to bring in revenue in 2026, and the Phase III Acute Bacterial Skin and Skin Structure Infections (ABSSSI) Registrational Topical Clinical Trial in Australia, which is set to commence soon.
CEO James Graham said the funding would provide an important injection for Recce, to help build its plans for the future.
“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,” he said.
“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.”
At 13:10 AEST, Recce shares were trading at 29.5 cents – a fall of 9.23% since the market opened.
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