Initial details and thoughts on the capital raise (deeper look later in the week/weekend):

Details summary:

• Offer closes 31 July.
• Total A$10m: A$8.0 million institutional placement and A$2.0 million SPP
• Offer Price of A$0.45 (Offer Price), a 25% discount to last close $0.60
• Funds raised under the Offer will see Recce through to the completion of Phase II/III trials and potential for commercialisation in South East Asia with immediate catalysts to announce to market
• $27m cash position post raise (including non-dilutive funding pending) to fund RCE to FY26. Note debt of $9m for R&D rebate advances should be offset from this, but there will also be a lot more R&D rebates generated as the cash balance is spent (so mostly net out).

Initial Thoughts:

·        SPP is standard ($30k per shareholder, may extend offer if over sub)

·        25% Raise discount: more than anyone ever wants but reasonable given market and being a biotech. Confident management are not giving things away and have a keen eye on dilution which is only ~15%.

·        Use of Funds: all value increasing activities and most of it should attract R&D rebates and or additional grants, so a multiplier on shareholder funds.

·        Balance sheet: Is now very strong and allows them to go hard on accelerating the key programs. I like that they are playing it safe on the cash runway.

·        Participate: I will most likely participate, I was holding off some of the funds I wanted to invest in RCE for the next capital raise, just thought it would be another 6mths away.

·        Addition of new institutional shareholders and increased liquidity is generally a positive.

I will have a much closer look later in the week or on the weekend, most info is old, but the planned program over the next year is new and needs a closer look.

Disc: I own RL+SM