RECCE PHARMACEUTICALS LTD — Capital/Financing Update 2019

Jul 29, 2019

R&D Incentive Rebate Received

SYDNEY, Australia, 30 July 2019: Recce Pharmaceuticals Ltd (ASX: RCE) ( Company ), the Company developing a new class of synthetic antibiotics, today announced it had received an advance payment from Radium Capital ( Radium ) against future research and development tax incentive funds.

The agreement with Radium sees the upfront payment of AUD $262,462 , representing up to 80 per cent of anticipated R&D Refund resulting from expenditure on R&D programs during the last quarter.

Funds received will be used to advance the Company’s new-class of broad spectrum antibiotic development program.

The agreement avoids diluting current shareholders, while confirming cash flows against R&D applicable expenditure. The Company will repay the funds advanced once received from the Australian Government.

Radium supports private and listed companies by paying R&D refunds in advance of their receipt at a minimal cost.

About Recce Pharmaceuticals Ltd

Recce Pharmaceuticals Ltd (ASX: RCE) is pioneering the development of a New Class of Synthetic Antibiotics with Broad Spectrum activity, addressing the urgent global health problem of antibiotic resistant superbugs. Its patented lead candidate RECCE[®] 327 has been designed for the treatment of blood infections and sepsis derived from E. coli and S. aureus bacteria – including their superbug forms. The FDA awarded RECCE[®] 327 Qualified Infectious Disease Product (QIDP) designation under the Generating Antibiotic Initiatives Now (GAIN) Act - labelling RECCE[® ] 327 for Fast Track designation, plus 10 years of market exclusivity post approval. Recce’s expanding anti-infective pipeline seeks to exploit the unique capabilities of RECCE[®] technologies targeting synergistic, unmet medical needs.

==> picture [553 x 59] intentionally omitted <==