Recce Pharmaceuticals (ASX:RCE) received firm commitments to raise AU$4 million through the placement of 10 million new shares at AU$0.40 apiece, according to a Friday filing with the Australian bourse.
The company is also launching a share purchase plan to allow eligible shareholders to subscribe for up to AU$30,000 worth of new shares to raise up to a further AU$4 million on the same terms as the placement, the filing said.
Funds will be used to bolster the balance sheet for commercial licensing with a Middle Eastern pharmaceutical firm, and fund clinical trials and Investigational New Drug enabling activities, per the filing.
Shares fell 17% in morning trade on Friday.