Recce Pharmaceuticals Secures $2.7M in Entitlement Offer, Total Funding Reaches $10.7M

Recce Pharmaceuticals Ltd (ASX:RCE), an Australian company focused on the development of a new class of synthetic anti-infectives, has announced the completion of its entitlement offer, successfully raising around $2.7 million before costs. This latest funding round increases the total capital raised by the company to approximately $10.7 million, which includes an earlier placement to institutional and professional investors that took place on September 18.

Eligible shareholders were given the opportunity to apply for one new fully paid ordinary share at an issue price of $0.44 for every 26 existing shares held as of September 14. The entitlement offer aimed to raise roughly $3 million before costs and allowed shareholders to request additional shares beyond their initial entitlement.

The entitlement offer was initially announced on September 11 and concluded on September 27. The new shares issued will rank equally with existing shares from September 29. Following the completion of this offering, Recce Pharmaceuticals’ total issued share capital will be $203,003,742.

James Graham, the CEO of Recce Pharmaceuticals, exercised his full entitlement by investing an additional $102,700 into the company. Meanwhile, directors plan to accept approximately $110,000 (around 250,000 shares) of the shortfall, pending shareholder approval during the company’s 2023 Annual General Meeting.

Recce Pharmaceuticals retains the right to place any or all of the remaining shortfall to one or more investors within three months of the closing date, at the same issue price as the new shares issued during the entitlement offer, though there is no assurance that such placements will occur.

The company is at the forefront of developing synthetic anti-infectives aimed at combating the pressing global health challenges posed by antibiotic-resistant superbugs and emerging viral pathogens. Its pipeline includes three patented, broad-spectrum, synthetic polymer anti-infectives: RECCE® 327, RECCE® 435, and RECCE® 529, which target bacterial and viral infections, respectively. Notably, the FDA has granted RECCE® 327 Qualified Infectious Disease Product designation under the Generating Antibiotic Initiatives Now (GAIN) Act, which includes Fast Track Designation and 10 years of market exclusivity post-approval.