Recce Pharmaceuticals Limited (ASX:RCE), a leading developer of synthetic anti-infectives designed to combat antibiotic-resistant superbugs, has successfully raised A$4.0 million through an institutional placement. The company also announced a Share Purchase Plan (SPP) targeting an additional A$4.0 million. The placement garnered strong support from sophisticated, professional, and institutional investors, involving the issuance of 10.0 million new shares at A$0.40 each. This offer price represented a 13.0% discount to the last closing price and an 18.3% discount to the 5-day Volume Weighted Average Price (VWAP) up to 23 June 2026.
The funds raised will bolster Recce’s balance sheet for commercial licensing with a leading Middle Eastern pharmaceutical company. Funds will also finance ongoing clinical trials, including Phase 3 Diabetic Foot Infections (DFI) Registrational Topical Clinical Trials in Indonesia and Australia, plus the US Department of War Burn Wound Program. Investment will also support Investigational New Drug (IND) enabling activities and general working capital. Recce CEO James Graham expressed satisfaction with the capital raising, noting its timing ahead of critical interim data readouts and progress towards potential R327G commercialisation.
Placement and SPP participants will receive one free unlisted attaching option for every two new shares, exercisable at A$0.60 and expiring 30 June 2027. Upon exercise, these options yield two unlisted piggyback options each, at an exercise price of A$1.00, expiring 30 June 2028. While placement shares utilise existing capacity, SPP options and those for participating directors require shareholder approval at an upcoming EGM. Post-offer, Recce anticipates a pro forma cash liquidity of approximately A$29.5 million, before offer costs. Ord Minnett Limited acted as Lead Manager for the offer, with SP Corporate Advisory Pty Ltd as Co-Lead Manager.
