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Highlights:
Recce secures a cornerstone commitment from a private party alongside launching a new pro-rata entitlement offer
Funds to support two Phase III topical clinical trials in Indonesia and Australia
Company forecasts a strengthened cash position and additional capital inflows through tax incentives
Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF), a biotechnology company in the healthcare stocks segment, has announced a new round of capital initiatives to advance its clinical development pipeline. The company has received a significant funding commitment through a private placement and initiated an entitlement offer to existing shareholders.
The combined capital initiatives aim to support the development and execution of late-stage clinical trials. This latest funding strategy is structured to maintain alignment between new and existing shareholders by offering identical pricing across both tranches.
Details of the Capital Raising Structure
The company will issue new fully paid ordinary shares to complete the capital raise. The entitlement offer is structured as a non-renounceable issue, allowing eligible shareholders to acquire new shares based on their current holdings. The offer price has been established below recent trading metrics, promoting accessibility for a broader shareholder base.
Board members have expressed their commitment to the process by indicating their participation in the entitlement offer. The move underscores the internal confidence in the company’s clinical roadmap and funding strategy.
Use of Proceeds and Clinical Trial Objectives
Proceeds from the funding will support multiple programs. A major focus is the commencement of a registrational Phase III clinical trial for Diabetic Foot Infections in Indonesia. In parallel, another Phase III trial will focus on Acute Bacterial Skin and Skin Structure Infections within Australia.
Funds will also be allocated toward ongoing regulatory activities, including the preparation of an Investigational New Drug application intended for submission to the United States Food and Drug Administration. A portion of the funds will be designated for working capital to sustain operational continuity.
Strengthened Financial Position and Anticipated Capital Inflows
Upon completion of the funding round, the company projects a materially stronger financial position. Additional capital inflows are anticipated through a research and development rebate from the Australian Taxation Office and a non-dilutive advance tied to eligible development expenditures.
These measures collectively support the advancement of Recce’s synthetic anti-infective treatments targeting severe bacterial conditions. With new therapies designed to combat antibiotic-resistant infections, Recce continues to expand its focus within the ASX 200 and broader healthcare stocks segment.
Entitlement Offer Timeline and Shareholder Participation
The entitlement offer will open in the second half of April and remain available through early May. Eligible shareholders based in approved jurisdictions will be able to participate in the offer, with directors confirming their intention to take part where applicable.
All new shares issued under the placement and entitlement offer will rank equally with existing shares. The offer price represents a discount to recent trading prices, creating alignment across both funding components.
