Recce Pharmaceuticals Ltd Receives $3.7M Tax Refund Ahead of Phase 3
$3.7M tax refund strengthens Recce’s cash position ahead of Phase 3
Recce Pharmaceuticals (ASX: RCE, FSE: R9Q) has received an AUD $3,667,427 income tax refund from the Australian Taxation Office (ATO) for the financial year ending 30 June 2025.
The payment represents non-dilutive funding, meaning it reaches the balance sheet without issuing new shares or diluting existing holders.
The refund comprises overseas R&D expenditure of $3,571,600 plus $95,826 in ATO interest, and it strengthens the Company’s financial position as it works toward upcoming Phase 3 clinical trial milestones.
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Breaking down the refund and what’s still to come
The $3,667,427 received from the ATO relates specifically to the FY2025 period. It should not be confused with a separate, larger rebate the Company anticipates for the following financial year.
Recce expects to receive an R&D Tax Incentive rebate of approximately $7.5 million from the ATO for the financial year ending 30 June 2026. That figure remains anticipated and has not yet been received.
| Item | Amount | Period | Status |
|---|---|---|---|
| R&D overseas expenditure refund | $3,571,600 | FY2025 | Received |
| ATO interest | $95,826 | FY2025 | Received |
| Total income tax refund | $3,667,427 | FY2025 | Received |
| Expected R&D Tax Incentive rebate | ~$7.5M | FY2026 | Anticipated |
How the refund lifts Recce’s cash runway
The income tax refund complements a recently completed equity raise, lifting the Company’s pro-forma cash position to approximately $33.1 million, up from a previous $29.5 million.
Investors should note an important qualification on this figure. The pro-forma position of approximately $33.1 million includes proceeds from the capital raise (before offer costs) and assumes the debt component is drawn, which remains subject to certain time limitations and the satisfaction of certain conditions. It is therefore not unconditional cash currently held.
The funding sources strengthening the balance sheet include:
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FY2025 income tax refund: $3,667,427 (received)
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A recently completed placement to institutional, sophisticated and professional investors raising approximately $4.0 million (announced 26 June 2026)
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A Share Purchase Plan (SPP) opening 6 July 2026 to eligible shareholders, to raise up to a further $4.0 million
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Anticipated FY2026 R&D Tax Incentive rebate of approximately $7.5 million
The placement and the SPP are two distinct components of the equity raising announced to ASX on 26 June 2026. Combined, these sources are intended to support the Company as it pursues its Phase 3 clinical trial milestones.
The A$8 million raise, comprising an institutional placement and a parallel SPP, was announced on 26 June 2026 and also identified a further A$27.5 million in potential non-dilutive and debt funding sources, including R&D rebates and an Avenue Capital facility.
Why non-dilutive funding matters
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About Recce and the road to Phase 3
Recce Pharmaceuticals is developing a New Class of Synthetic Anti-infectives designed to address antibiotic-resistant superbugs. Its patented, broad-spectrum pipeline includes three synthetic polymer anti-infectives.
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RECCE® 327 (R327): an intravenous and topical therapy for serious bacterial infections, including superbug forms
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RECCE® 435 (R435): an orally administered therapy for bacterial infections
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RECCE® 529 (R529): a candidate targeting viral infections
The World Health Organization (WHO) has added R327, R435 and R529 to its list of antibacterial products in clinical development for priority pathogens. The FDA 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 post-approval.
With multiple non-dilutive and capital sources reinforcing its balance sheet, Recce remains well placed to advance toward its upcoming Phase 3 clinical trial milestones.
Recce now operates dual Phase 3 programs across Australia and Indonesia, with the Australian arm having received HREC approval to advance to pivotal registrational status following Phase 2 results that showed 93% primary efficacy at Day 14 and no serious adverse events.
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