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Recce Pharmaceuticals (ASX:RCE) is aiming to complete a capital raising of $15.8 million to fund its clinical trials in Indonesia and Australia through a $5M placement to a private investor and a $10.8M entitlement offer to shareholders.
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The placement involves a commitment from a private investor based in Australia, and the issue of around 17.9 million new fully-paid ordinary Recce shares, to be priced at 28 cents each for a total of $5 million.
The company also launched an entitlement offer of one new share for every six fully paid ordinary shares held by eligible Recce shareholders.
That price will be the same as the placement; the goal there is to raise $10.8M.
Recce plans to use the Placement funds to drive completion of one 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.
Also related is the Phase III Acute Bacterial Skin and Skin Structure Infections Registrational Topical Clinical Trial in Australia, which is commencing soon.
“We’re delighted to receive 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,” CEO James Graham said.
The funding, he added, now gives Recce an important injection to build future plans.
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He continued: “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.”
Mid-arvo, Recce was trading at 29.5cps after a 9.23% drop.
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