- Recce Pharmaceuticals (RCE) is raising up to $11 million through a strongly supported placement and entitlement offer
- The placement comprises the issuance of 18.2 million new shares at 44 cents each
- Funds will be used toward further trials and a US expansion
- Ongoing trials using Recce’s flagship R327 anti-infective have shown superior efficiency in killing UTI infections as well as anecdotal evidence it can kill antibiotic-resistant infections
- Shares last traded at 49 cents
Recce Pharmaceuticals (RCE) has announced it’s raising up to $11 million through a strongly supported placement and entitlement offer.
The placement involves the issuance of 18.2 million new shares at 44 cents each, generating $8 million in funds. An additional $3 million will be raised through an entitlement offer at the same price.
Recce management reported it secured strong interest from global investment funds. One such fund, although not specified by Recce, is set to become a substantial shareholder with a stake of more than 5 per cent.
Recce’s directors are expected to participate in the entitlement offer.
The $11 million in capital will be used to advance Recce’s ongoing anti-infective trials.
The company recently achieved success with its flagship Recce 327 (R327) anti-infective as a gel for treating antibiotic-resistant infections in patients with post-surgery complications.
While acknowledging that the sample size in this case was not sufficient for investment decisions, Recce remains optimistic about the progress of R327.
This same medication has demonstrated effectiveness in treating urinary tract infections (UTIs) in both men and women. Recce is also exploring its product line’s efficacy in treating burn wounds and diabetic foot infections.
Some of the funds will be allocated to expanding manufacturing operations in the United States.
“We are thrilled to receive such strong financial interest, particularly among global investment funds,” RCE 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 shares last traded at 49 cents.