Recce Pharmaceuticals Secures $8M Placement and Launches $3M Entitlement Offer to Shareholders

• $8 million commitments received in a strongly supported placement to new and existing institutional investors 
• $3 million entitlement offer at the same offer price as the placement
• Directors intend to take up entitlements in part or in full in the entitlement offer 
• Global fund to become ‘Substantial Shareholder’ (>5% ownership) on completion of the placement
• Funds to support multiple Phase I/II clinical trials and international expansion

SYDNEY, Australia, Sept. 13, 2023 (GLOBE NEWSWIRE) -- Recce Pharmaceuticals Ltd (ASX: RCE, FSE: R9Q) (the Company or Recce), the Company developing a new class of synthetic anti-infectives, announced today a capital raise of up to approximately $11 million before costs consisting of:

• Placement of approximately $18.2 million new fully paid ordinary shares in the Company (New Shares) at $0.44 per new share (Offer Price), with commitments received totaling $8 million from institutional, sophisticated, and professional investors (Placement).
• A pro-rata non-renounceable entitlement offer of one new share for every 26 existing fully paid ordinary shares in the Company (Shares) held by eligible shareholders at the same offer price as the placement to raise to a further $3 million (Entitlement Offer).

“We are thrilled to receive such strong financial interest, particularly among global investment funds,” said James Graham, Chief Executive Officer of Recce Pharmaceuticals. “It was important to the Recce team that our shareholders be offered the same opportunity, and we are pleased to make this available to them. As the world’s most clinically advanced new class of anti-infectives at this time, it is clear that commercial potential is recognized. With a strengthened balance sheet and multiple clinical trials, we are well positioned for the time ahead.”

Use of Funds
The funds raised will be used for the following activities:

• $6M – Clinical trials (significant, unmet medical needs):
  • Phase I/II (IV) - Urinary tract infections/urosepsis
  • Phase II (topical) - Burn wound infections
  • Phase II (topical) - Diabetic Foot infections
• $2M – Build out advanced pre-clinical portfolio (in vitro, in vivo, and ex vivo studies)
• $1M – Manufacturing boost, including geographical expansion to the U.S.
• $2M – General working capital (operational costs delivering above)