• Debt facility of up to ~A$30m (US$20m) established with Avenue Capital Group
• Initial non-dilutionary funding of ~A$11.5m (US$7.5m) supporting two Registrational Phase 3 clinical trials
• Strengthens Recce's financial position to pro-forma A$27.5m

Recce Pharmaceuticals Ltd has secured a debt facility of up to ~A$30m (US$20m) with global investment firm Avenue Capital Group. The initial non-dilutionary funding of ~A$11.5m (US$7.5m) will support Recce's two Registrational Phase 3 clinical trials in Indonesia and Australia for the treatment of Diabetic Foot Infections (DFI) and Acute Bacterial Skin and Skin Structure Infections (ABSSSI), as well as broader commercialisation efforts across the ASEAN region. The facility strengthens Recce's balance sheet and follows a recently successful equity capital raising of A$15.8m, bringing the Company's financial position to pro-forma A$27.5m. Recce is further permitted to retain its FY25 R&D rebate of ~A$8.5m, resulting in an effective ~A$36m cash runway sufficient for the two Phase 3 registrational studies and market authorisation submission. The debt facility also includes warrants for Avenue to acquire Shares equating to 8.00% warrant coverage, subject to ASX approval.

The debt facility of up to ~A$30m (US$20m) provides non-dilutive growth capital to support Recce's Phase 3 clinical trials and commercialisation efforts, with an initial funding of ~A$11.5m (US$7.5m).