Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) has secured $8 million in placement funds and has moved to generate a further $3 million in a share entitlement offer to deliver multiple Phase I/II clinical trials and facilitate international expansion.
RCE intends to use $6 million of the new capital for clinical trials, including a Phase I/II intravenous (I.V.) trial for UTI/Urosepsis infections, and two Phase II topical trials for burn wound infections and diabetic foot infections.
Funding will also go to a build-out of Recce’s pre-clinical portfolio, which will involve in vitro, in vivo and ex vivo studies, boosting manufacturing capacity in the US, and general working capital.
Well positioned for forward progress
“We are thrilled to receive such strong financial interest, particularly among global investment funds. It was important to the Recce team that our shareholders be offered the same opportunity and are pleased to make this available to them,” Recce Pharmaceuticals CEO James Graham said.
“As the world’s most clinically advanced New Class of Anti-Infectives at this time, it is clear the commercial potential is recognised.
“With a strengthened balance sheet and multiple clinical trials current, we are now well positioned for the time ahead.”
RCE has received binding commitments from institutional, sophisticated and professional investors to subscribe for just over 18 million placement shares at an offer price of $0.44 per share to raise $8 million before costs.
Recca says that a global fund will become a ‘substantial shareholder’ (>5% ownership) on completion of the placement.
The placement is not underwritten and Canaccord Genuity (TSX:CF, LSE:CF) (Australia) Limited acted as lead manager to the placement with Ord Minnett Limited acting as co-manager to the placement.
In the entitlement offer, Recce will allow shareholders to apply for one new share for every 26 held at an issue price of $0.44 per share.
This entitlement offer will be open from Friday, September 15, 2023, to 5.00pm (Sydney time) on Wednesday, September 17, 2023, to eligible shareholders and will not be underwritten.
Directors intend to take up entitlements in part or in full in the entitlement offer.