Recce Pharmaceuticals Ltd (ASX:RCE), the Australian firm developing a new class of synthetic anti-infectives, announced on Tuesday that it has completed an entitlement offer, raising approximately $2.7 million before costs. This development brings the total funds raised by the company to approximately $10.7 million through the entitlement offer and a placement to institutional, sophisticated, and professional investors completed on September 18.
Under the terms of the entitlement offer, eligible shareholders were invited to apply for one new fully paid ordinary share in the company at an issue price of $0.44 per new share. This offer was made for every 26 existing fully paid ordinary shares in the company held at 19:00 AEST (09:00 GMT) on Thursday, September 14. It aimed to raise approximately $3 million before costs and provided shareholders with the opportunity to apply for additional new shares above their entitlement offer.
The entitlement offer was announced on Monday, September 11, and closed at 17:00 AEST on Wednesday, September 27. The new shares issued under this offer will rank equally in all respects with existing shares issued on September 29. Following this issue, Recce Pharmaceuticals' total issued share capital will be $203,003,742.
James Graham, Chief Executive Officer of Recce Pharmaceuticals, took up his full entitlement by investing a further $102.7K into the company. Meanwhile, directors intend to take up approximately $110,000 (~250,000 Shares) of the shortfall subject to shareholder approval at the company's 2023 Annual General Meeting.
The company retains the right to place any or all of the remaining shortfall to one or more investors by no later than three months after the closing date at the same issue price as the new shares issued under the entitlement offer. However, there is no guarantee that any such placement will occur.
Recce Pharmaceuticals is developing a new class of Synthetic Anti-Infectives designed to address the urgent global health problems of antibiotic-resistant superbugs and emerging viral pathogens. Their anti-infective pipeline includes three patented, broad-spectrum, synthetic polymer anti-infectives: RECCE® 327, RECCE® 435, and RECCE® 529 targeting bacterial and viral infections respectively. The FDA has awarded RECCE® 327 Qualified Infectious Disease Product designation under the Generating Antibiotic Initiatives Now (GAIN) Act – labeling it for Fast Track Designation, plus 10 years of market exclusivity post approval.
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