• A$5.0 million commitment from Australian-based private investor
• A$10.8 million Entitlement Offer at the same offer price as the placement
• Funds to support Phase III Topical clinical trials in Indonesia and Australia

Recce Pharmaceuticals Ltd (ASX:RCE) has announced a capital raising of up to approximately A$15.8 million (before costs) to fund Phase III clinical trials for its synthetic anti-infectives. The capital raising consists of a A$5.0 million placement to an Australian-based private investor and a pro-rata non-renounceable entitlement offer to raise up to a further A$10.8 million. Proceeds from the capital raising will be used to support a Registrational Phase III clinical trial for Diabetic Foot Infections in Indonesia and a Registrational Phase III trial for Acute Bacterial Skin and Skin Structure Infections (ABSSSI) across Australia. Recce will have a strong pro-forma cash position of A$17.7 million post the capital raising, and expects additional R&D rebates and non-dilutive capital via R&D advance. The company's directors intend to participate in the entitlement offer. The placement is not subject to shareholder approval and will fall within the company's placement capacity under ASX Listing Rules.

The outcome of the Phase III trials represents a potential inflection point for the company, with the opportunity to advance a new standard of care and improve outcomes for patients.