ASX Announcement Placement of Entitlement Offer Shortfall

SYDNEY Australia, Tuesday, 3 June 2025: Recce Pharmaceuticals Ltd (ASX:RCE, FSE:R9Q) (the Company or Recce), a leading developer of a new class of Synthetic Anti-infectives, is pleased to announce it has received firm commitments to place all of the shortfall shares from the recent 1-for-6 pro-rata non-renounceable entitlement offer, the results of which were announced on 16 May 2025.

The shortfall placement marks the completion of the Company’s capital raising of A$15.8 million (before costs) (Capital Raising) consisting of:

·         the placement of approximately 17.9 million shares to an Australian-based private investor to raise A$5.0 million;

·         the A$3.4 million raised under the pro-rata non-renounceable entitlement offer; and

·         the A$7.4 million under the shortfall placement.

A small number of existing institutional and sophisticated investors have opted to take up the shortfall, raising A$7.4 million at A$0.28 per share, being the same price as the shares issued under the private placement and entitlement offer announced on 10 April 2025. Settlement of the shortfall shares are scheduled for Friday, 6 June 2025, with allotment on or around Tuesday, 10 June 2025.

Funding for Phase 3 Trials

Proceeds from the Capital Raising will fund significant Phase 3 clinical trials and commercialisation.  Proceeds will be applied to the following:

·         Completion of Phase 3 Diabetic Foot Infection (DFI) Registrational Topical Clinical Trial in Indonesia – the catalyst for revenue in 2026;

·         Completion of Phase 3 Acute Bacterial Skin and Skin Structure Infections (ABSSSI) Registrational Topical Clinical Trial in Australia;

·         Additional clinical activities, Investigational New Drug Application to the FDA; and

·         Payment of offer costs and general working capital.

Cash position post equity raising:

·         Pro-forma cash position of A$16.0 million;

·         Excludes an additional estimated R&D rebate of A$8.5 million from the Australian Taxation Office (ATO) (expected Q4 2025); and

·         Excludes non-dilutive capital via R&D advance of approximately A$10.0 million anticipated following completion of the capital raise.

Commenting on the Offer, Chief Executive Officer, James Graham said: “This successful shortfall placement is very gratifying for Recce, particularly given the more challenging environment for raising capital for biotechnology companies that currently exists. We are delighted to achieve our intended capital raise and receive this ongoing support from our existing institutional and sophisticated shareholders. Proceeds from the capital raising will be used to support the completion of a Registrational Phase 3 clinical trial for Diabetic Foot Infections in Indonesia and a Registrational Phase 3 for ABSSSI across Australia, following a recently announced Phase II ABSSSI clinical study achieving all endpoints.”

Recce Chairman, Dr John Prendergast, stated: “The completion of the shortfall placement and capital raise supports a critical step forward as we commence our Phase 3 trial. Given current share levels and the anticipated trial timeline, we believe Recce continues to offer strong underlying value. The outcome of this trial represents a potential major inflection point for the Company, with the opportunity to advance a new standard of care in infectious diseases, offering long sought-after improved outcomes for patients. We look forward to keeping shareholders updated as we progress.”

Ord Minnett Limited acted as Lead Manager to the Capital Raising and Spark Plus Pte Ltd acted as Co-Lead Manager.

About Recce Pharmaceuticals Ltd

Recce Pharmaceuticals Ltd (ASX: RCE, FSE: R9Q) is developing a New Class of Synthetic Anti-Infectives designed to address the urgent global health problems of antibiotic-resistant superbugs.

Recce’s anti-infective pipeline includes three patented, broad-spectrum, synthetic polymer anti-infectives: RECCE^® 327 (R327) as an intravenous and topical therapy that is being developed for the treatment of serious and potentially life-threatening infections due to Gram-positive and Gram-negative bacteria, including their superbug forms; RECCE^® 435 (R435) as an orally administered therapy for bacterial infections; and RECCE^® 529 (R529) for viral infections. Through their multi-layered mechanisms of action, Recce’s anti-infectives have the potential to overcome the processes utilised by bacteria and viruses to overcome resistance – a current challenge facing existing antibiotics.

The World Health Organization (WHO) added R327, R435, and R529 to its list of antibacterial products in clinical development for priority pathogens, recognising Recce’s efforts to combat antimicrobial resistance. The FDA granted R327 Qualified Infectious Disease Product designation under the Generating Antibiotic Initiatives Now (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.

Recce wholly owns its automated manufacturing, supporting current clinical trials. Recce’s anti-infective pipeline aims to address synergistic, unmet medical needs by leveraging its unique technologies.