Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) has boosted total recent capital raising efforts to A$12.4 million, before costs, after receiving applications for approximately A$4.4 million in a strongly oversubscribed share purchase plan (SPP) which closed on July 2, 2024.
Applications received were more than double the initial SPP target of A$2.0 million with the board exercising its discretion and determined to accept all valid applications.
The SPP generated significant support from Recce’s existing shareholders and adds to the recently completed A$8 million institutional placement.
READ: Recce Pharmaceuticals secures long cash runway for trials after raising $8 million; plans $2 million SPP
Use of funds
Funds raised from the offer will be used to advance clinical trials for intravenous use of R327, topical applications of R327G, including Phase III clinical activities in Indonesia, IND-enabling activities, working capital and offer costs.
The Recce board wishes to thank all new and existing shareholders who participated in the offer.
When included with the company’s June 30, 2024, cash balance of $4.4 million and approximate A$3 million grant from the US Department of Defence, Recce is well funded with a pro-forma cash balance of approximately A$19.8 million.
READ: Recce Pharmaceuticals granted US$2 million from US Department of Defense for RECCE® 327 Gel
Approximately 9.9 million new shares will be issued at a price of A$0.45 per share, being the same issue price as the placement, and will rank equally with existing Recce fully paid ordinary shares quoted on the ASX from their date of issue.
Shares under the SPP are expected to be issued on Tuesday, August 6, 2024, with the quotation of the shares expected to commence on Wednesday, August 7, 2024.