Recce Pharmaceuticals raises $4M via placement, eyes $4M more
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- Recce Pharmaceuticals has secured firm commitments to raise $4 million through an institutional share placement at $0.40 per share.
- The company's stock fell 17.39% to $0.38 following the capital-raising announcement.
- The newly raised capital will support ongoing clinical trials and commercial licensing activities with a Middle Eastern pharmaceutical firm.
Recce Pharmaceuticals (ASX:RCE) has secured firm commitments to raise $4 million through a new institutional share placement.
The placement price of $0.40 per share represents a discount to the company’s previous closing price of $0.46.
The company is also launching a share purchase plan to raise up to an additional $4 million.
Participants will receive one free-attaching unlisted option for every two new shares issued under the placement and plan.
Following the announcement, the Recce Pharmaceuticals share price was down at $0.38.
The company stated that proceeds will strengthen its balance sheet for commercial licensing with a Middle Eastern pharmaceutical company.
This capital raise follows a prior announcement in May where the company signed a Middle East licensing term sheet.
