Recce Pharmaceuticals Ltd Launches A$4M Placement for Middle East Push
Recce launches A$4.0 million placement to fund Middle East commercial push
Recce Pharmaceuticals (ASX: RCE) has received firm commitments to raise A$4.0 million through an institutional placement priced at A$0.40 per share, issuing 10.0 million new fully paid ordinary shares.
The placement, announced on 26 June 2026, was supported by new and existing institutional, sophisticated and professional investors. Recce is running a parallel Share Purchase Plan (SPP) allowing eligible shareholders to participate on the same terms, potentially raising up to a further A$4.0 million.
Proceeds are earmarked to strengthen the company’s balance sheet for commercial licensing with a leading Middle Eastern pharmaceutical company and to fund ongoing Phase 3 clinical trials, alongside Investigational New Drug enabling activities and general working capital.
When big ASX news breaks, our subscribers know first
Inside the raise: pricing, options and structure
Placement and SPP pricing
The placement and SPP are priced identically at A$0.40 per share. Under the SPP, eligible shareholders may subscribe for up to $30,000 of SPP Shares on the same terms offered to placement participants. Eligibility was set as at 7.00pm (AEST) on 25 June 2026 for shareholders with a registered address in Australia or New Zealand, or who are Accredited Investors in the US.
The issue price represents a discount across recent trading benchmarks, summarised below.
| Metric | Detail |
|---|---|
| Issue price | A$0.40 per share |
| Discount to last close ($0.46, 23 June 2026) | 13.0% |
| Discount to 5-day VWAP ($0.490) | 18.3% |
| Discount to 10-day VWAP ($0.497) | 19.4% |
Attaching and Piggyback options explained
Participants in both the placement and SPP will receive a layered option structure attached to their shares:
-
One (1) free unlisted Attaching Option for every two (2) New Shares and SPP Shares allocated, carrying an exercise price of A$0.60 and expiring 30 June 2027.
-
On valid exercise of each Attaching Option, holders automatically receive one (1) fully paid ordinary share plus two (2) free unlisted Piggyback Options.
-
Each Piggyback Option carries an exercise price of A$1.00 and expires 30 June 2028, conferring the right to one (1) ordinary share upon exercise.
The Attaching Options and Piggyback Options will be offered pursuant to a prospectus to be lodged with ASIC and the ASX, and remain subject to formal confirmation from the ASX that the structure complies with the Listing Rules. The SPP Options are subject to shareholder approval at an Extraordinary General Meeting (EGM) scheduled on or about 31 August 2026.
Ord Minnett Limited acted as Lead Manager to the Offer, with SP Corporate Advisory Pty Ltd acting as Co-Lead Manager.
Where the money is going
Funds raised under the combined Offer have been allocated across four strategic priorities, with the largest tranche directed toward the company’s Middle Eastern commercial ambitions:
-
A$3.2M — Strengthen the balance sheet for commercial licensing with a leading Middle Eastern pharmaceutical company, including initiatives to support the commercial agreement.
-
A$2.0M — Clinical trials addressing significant unmet medical needs, including completion of the Phase 3 Diabetic Foot Infections (DFI) Registrational Topical Trial in Indonesia, the Phase 3 DFI trial in Australia (for the US FDA), and continuance of the US Department of War Burn Wound Program.
-
A$2.0M — Activities enabling the Investigational New Drug application to the FDA and the Indonesia FDA (BPOM).
-
A$0.8M — General working capital and Offer costs.
A strengthened liquidity position
Post the Offer, Recce expects to have pro forma cash liquidity (before Offer costs) of approximately A$29.5 million. The company also anticipates additional funding through an estimated R&D Rebate (A$7.5 million) and non-dilutive capital via an R&D Advance (A$10 million).
A possible further A$10 million drawdown under the existing Avenue Capital debt facility remains available, providing investors with clarity on the runway to fund near-term clinical and commercial catalysts.
CEO Commentary
“The capital raising comes at an exciting time for the Recce business, having recently signed a non-binding term sheet with a leading Middle Eastern Pharmaceuticals Company and ahead of interim data readouts in Indonesia which is a positive step towards the potential commercialisation of R327G. The Company has many key milestones over the next 12 months and we look forward to keeping shareholders up to date on our progress,” said James Graham, Chief Executive Officer.
Why synthetic anti-infectives matter
Antibiotic-resistant superbugs represent an urgent global health problem, as bacteria evolve to overcome the medicines designed to treat them. Recce is developing a New Class of Synthetic Anti-Infectives intended to address this challenge through multi-layered mechanisms of action.
The company’s pipeline comprises three patented, broad-spectrum synthetic polymer anti-infectives:
-
R327 — an intravenous and topical therapy for serious bacterial infections, including superbug forms.
-
R435 — an orally administered therapy for bacterial infections.
-
R529 — a candidate targeting viral infections.
Several external markers support the pipeline’s credibility. 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 GAIN Act, providing Fast Track Designation and 10 years of market exclusivity post approval. R327 is also included on The Pew Charitable Trusts’ Global New Antibiotics in Development Pipeline as the sole synthetic polymer and sepsis drug candidate in development.
The next major ASX story will hit our subscribers first
What comes next: timeline to watch
The indicative timetable below sets out the key dates for the placement and SPP. Recce has noted the schedule is indicative only and remains subject to change.
-
Placement settlement: 30 June 2026
-
Allotment and commencement of trading of placement shares: 1 July 2026
-
SPP offer opens: 6 July 2026
-
SPP offer closes: 5:00pm, 20 July 2026
-
Last day to announce SPP results / allotment: 27 July 2026
-
Commencement of trading of SPP shares: 28 July 2026
-
Extraordinary General Meeting (EGM): on or about 31 August 2026
-
Lodgement of Prospectus with ASIC and ASX in relation to Attaching Options and Piggyback Options: on or about 2 September 2026
Recce has recently signed a non-binding term sheet with a leading Middle Eastern pharmaceutical company, while interim data readouts in Indonesia represent a positive step towards the potential commercialisation of R327G. With pro forma liquidity of approximately A$29.5 million and several potential non-dilutive funding sources, the company has outlined a funding base intended to support the milestones management has flagged across the coming 12 months.
Don’t Miss the Next ASX Healthcare Breakthrough
Big News Blast delivers FREE breaking ASX healthcare news straight to your inbox within minutes of release, complete with in-depth analysis already done for you. Over 20,000 investors rely on it to stay ahead of the market. Click the “Free Alerts” button at StockWire X to start receiving alerts the moment news breaks.