ASOF is managed by New York-based institutional asset manager The Lind Partners, which has made more than 50 ASX investments since 2009 including many companies in the biotech sector.
The investment gives Recce access to additional funding to support the submission of the Investigative New Drug (IND) application for its Recce® 327 synthetic antibiotic to the U.S. FDA.
Recce® 327 is a synthetic compound being developed to fight against viruses and bacteria, including superbugs, even after repeated use.
The company is also planning to start the Phase I clinical study of Recce® 327.
The new share purchase and convertible security agreement gives Recce access to capital through a flexible convertible instrument and the ability to secure additional funding in monthly stages.
Lind will make an initial upfront investment of A$300,000 and subsequent investments in monthly equity tranches of A$50,000 that can be increased up to A$250,000.
The agreement allows Recce to issue shares at prices linked to the share price prevailing at the time, minimising dilution for existing shareholders while supporting anticipated financing needs.
Last month, Recce successfully verified the chemical structure and stability of its lead compound as it moves closer to completing the documentation required for the U.S. FDA application.
Recce’s next step is to assess a soon to conclude study of toxicity in rats, utilising the newly developed analytical methods.
Antibiotic resistant bacterial infections (superbugs) are widely acknowledged as a threat to global human and animal health.