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RECCE PHARMACEUTICALS LTD Capital/Financing Update 2018
65669_rns_2018-09-12_c44fe810-67a8-412e-ac26-d7c295f4070a.pdf
Capital/Financing Update
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Funding Update
SYDNEY, Australia, 13 September 2018: Recce Pharmaceuticals Ltd (ASX: RCE) (Recce or the Company), developing a new class of synthetic antibiotics, today announced it had entered into an agreement with Radium Capital to receive advance payments of its R&D tax incentive funds.
The agreement sees the upfront payment of $543,699 and allows Recce to receive on-going advances equivalent to 80 per cent of R&D applicable expenditure. Fees payable to Radium Capital include an upfront fee of $768.90 plus 1.25 per cent per month carry rate on advanced funds received, payable by way of offset against R&D refunds as part of the agreement. Funds received will be used to advance the Company's new-class of antibiotics development program.
The agreement avoids diluting current shareholders, while confirming cashflows against R&D applicable expenditure. Recce will repay the funds advanced once received from the Australian Government.
Radium Capital supports private and listed companies by paying R&D refunds in advance of their receipt at a minimal cost. Recce expects to receive an above forecast $679,623 R&D rebate from the Australian Government for FY18.
About Recce Pharmaceuticals Ltd
Recce Pharmaceuticals Ltd (ASX: RCE) is pioneering the development and commercialisation of a new class of synthetic antibiotics with broad spectrum activity designed to address the urgent global health problem of antibiotic resistant superbugs. Its patented lead candidate known as RECCE® 327 has been developed for the treatment of blood infections and sepsis derived from E. coli and S. aureus bacteria – including their superbug forms. Pre-clinical testing in laboratories and animal models, in Australia and overseas has demonstrated positive results. Recce has a manufacturing facility in Australia and is developing clinical research partners in the USA. The Company has
developed an automated process to manufacture its lead compound ahead of first-in-human clinical trials.
For further information please visit www.recce.com.au or contact:
Investor Relations James Graham Executive Director Recce Pharmaceuticals Ltd Tel: +61 (02) 8075 4585
Media (Australia) Andrew Geddes CityPR Tel: +61 (02) 9267 4511
Media (International) Sue Charles/Gemma Harris Instinctif Partners Tel: +44 (0)20 7866 7860 E: [email protected]
