Recce Pharmaceuticals raises $4M via placement, eyes $4M more

• 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.