Recce Pharmaceuticals Completes Share Purchase Plan Successfully

Recce Pharmaceuticals Ltd (ASX: RCE, FSE: R9Q), a pioneering developer of synthetic anti-infectives, announced the successful closure of its Share Purchase Plan (SPP) on August 6, 2024. The SPP, initially reported on July 2, 2024, received overwhelming support from existing shareholders, with applications totaling approximately A$4.4 million, surpassing the initial target of A$2.0 million. The Board decided to accept all valid applications, resulting in the full amount being raised under the SPP.

Around 9.9 million new shares will be issued at A$0.45 per share, matching the issue price of the recent institutional placement. These new shares will rank equally with existing fully paid ordinary shares quoted on the ASX from their issuance date. The distribution of the shares is set to occur on Tuesday, August 6, 2024, with trading on the ASX beginning on Wednesday, August 7, 2024.

The successful SPP, combined with a recently completed A$8.0 million institutional placement, brings the total funds raised to A$12.4 million. Factoring in Recce's current cash balance of A$4.4 million as of June 30, 2024, and an approximate A$3.0 million grant from the U.S. Department of Defence, the company is well-fortified with a pro forma cash position of around A$19.8 million.

The funds raised will be strategically used to advance several key initiatives. These include clinical trials for the intravenous application of R327 and topical uses of R327G. Additionally, the proceeds will support Phase III clinical activities in Indonesia and IND-enabling activities, provide working capital, and cover offer costs. The Board expressed gratitude to both new and existing shareholders for their participation and support.

Recce Pharmaceuticals Ltd focuses on developing a new class of synthetic anti-infectives aimed at combating antibiotic-resistant superbugs and emerging viral pathogens. The company's pipeline features three patented, broad-spectrum, synthetic polymer anti-infectives. RECCE® 327 (R327) is being developed for serious and potentially life-threatening infections caused by Gram-positive and Gram-negative bacteria, including superbugs, in both intravenous and topical forms. RECCE® 435 (R435) is an orally administered therapy targeting bacterial infections, and RECCE® 529 (R529) is designed for viral infections. These anti-infectives employ multi-layered mechanisms of action, potentially overcoming bacterial and viral resistance—a significant challenge with current antibiotics.

The World Health Organization (WHO) has recognized the importance of Recce’s work by including R327, R435, and R529 on its list of antibacterial products in clinical development for priority pathogens. The U.S. Food and Drug Administration (FDA) has granted R327 Qualified Infectious Disease Product designation under the Generating Antibiotic Initiatives Now (GAIN) Act, providing Fast Track Designation and 10 years of market exclusivity upon approval. Additionally, R327 is listed on The Pew Charitable Trusts’ Global New Antibiotics in Development Pipeline as the only synthetic polymer and sepsis drug candidate under development.

Recce's wholly-owned automated manufacturing supports its current clinical trials, emphasizing the company's commitment to addressing unmet medical needs through innovative technologies in its anti-infective pipeline.