RECCE PHARMACEUTICALS LTD — Annual Report 2021

Aug 30, 2021

RECCE PHARMACEUTICALS LTD

ABN 73 124 849 065

Appendix 4E

Preliminary Final Report for the financial year ended 30 June 2021

Current Reporting Period: 30 June 2021

Previous Reporting Period: 30 June 2020

Results for Announcement to the Market

	12 months to	12 months to	%
	30 June 2021	30 June 2020	change
	$	$
Revenue from ordinary activities	-	-	0%
Loss from ordinary activities after tax attributable to members	(13,513,366)	(4,316,737)	213%
Net loss for the period attributable to members	(13,513,366)	(4,316,737)	213%

Brief Explanation of Results

Operational Report

During the reporting period, significant advances were made in support of the development of the Company's broad-spectrum synthetic antibiotic program. Some of the highlights for the year were as follows:

• Entered into an Antiviral SARS-CoV-2 Screening Program Agreement, with a scientific Australian Government agency and a world Class institute focused on infection and immunity following selection of RECCE® 327 in the Priority 1 candidate group

• Entered into an agreement with Path BioAnalytics Inc, a precision medicine company based in Durham, North Carolina, USA, for the study of RECCE® 327 and RECCE® 529 against SARS-CoV-2

• Announced positive efficacy activity against Helicobacter pylori (H. pylori) bacteria in rats treated with new anti-infective RECCE® 435, including a favourable toxicity profile in a related study. RECCE® 435 is a synthetic polymer anti-infective formulated for oral use

• Successful placement of $27.9m (before costs) in fully paid ordinary shares at $1.30 per share

• Entered into an agreement with the Murdoch Children’s Research Institute to conduct pre-clinical studies assessing the potential of RECCE® 435 for the treatment of Helicobacter pylori infections

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• Announced it had received Human Research Ethics Committee approval to start a Phase I/II topical clinical trial of its synthetic anti-infective RECCE® 327 for patients with infected burn wounds

• Expansion of wholly owned patent estate - Patent Family 3 Grants in Japan

• announced it had formalised an agreement with Fiona Stanley Hospital for a Phase I/II clinical trial to assess the potential of RECCE® 327’s new spray-on, broad-spectrum antibiotic for the treatment of topical burn wound infections

• Dual Listed on the Frankfurt Stock Exchange (FSE), with trading commencing Monday 8 March at 8:00am (CET) under the code R9Q

• the European Patent Office granted Patent Family 3 “Anti-Virus Agent for Treatment Of Viral Infections”, furthering marketing and manufacturing monopolies to February 2037

Financial Report

The operating loss has increased to $13,513,366 (2020: loss of $4,316,737) as a result of the increased focus on its R&D activities and share-based payments. The annual loss was after a R&D tax incentive of $1,566,031 (2020: $1,071,727).

The loss per share has increased during the year to 8.70 cents (2020: 3.39 cents).

The Group’s focus is on progressing RECCE® 327 into human clinical trials.

Dividends

	Amount per	Percentage
	Security	Franked
Final Dividend	Nil	N/A
Interim Dividend	Nil	N/A
Date the Dividend is Payable:	N/A	N/A
Record Date for determining entitlements to the Dividends:	N/A	N/A

The Company did not declare a dividend during the financial year and has not declared a dividend since the end of the financial year.

Net Tangible Assets per Security
As at 30 June 2021 (cents)	11.80
As at 30 June 2020 (cents)	1.70

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