FRAMINGHAM, Mass., Sept. 07, 2023 (GLOBE NEWSWIRE) — Arch Therapeutics, Inc. (OTCQB: ARTH) (“Arch” or the “Company”), a marketer and developer of novel self-assembling wound care and biosurgical products, today announced that it completed a private placement with institutional and accredited individual investors (collectively, the “Investors”) as a Bridge Offering preceding a planned national exchange listing of the Company’s common stock on either Nasdaq Global Market, Nasdaq Capital Market, New York Stock Exchange or NYSE American (the “Uplisting”). The private placement consisted of the issuance of common stock, par value $0.001, at a purchase price of $0.275 per share and accompanying common warrant to purchase two shares of common stock (or pre-funded warrants at a purchase price of $0.274 per pre-funded warrant and accompanying common warrant to purchase two shares of common stock) with total gross proceeds of approximately $2.6 million in the aggregate in connection with two separate closings (the “Bridge Offering”), with the initial closing in July. Lowenstein Sandler LLP acted as counsel to the Company in connection with the Bridge Offering, and ArentFox Schiff LLP served as counsel to Dawson James Securities, Inc.
Among other restrictions, the common stock and pre-funded warrants issued in connection with the Bridge Offering shall be subject to a one-year lock-up agreement (the “Lock-up Agreement”) restricting the sale or exercise of any of the securities issued in connection with the Bridge Offering. For investors that elect to participate in the anticipated near-term financing related to the planned Uplisting in an amount at least 4.3 times greater than their investment in the Bridge Offering, the Lock-up Agreement will be immediately terminated. Additional information regarding the terms of the Bridge Offering may be found on the Form 8-Ks filed with the Securities & Exchange Commission on July 13, 2023, and September 7, 2023. Dawson James Securities, Inc. served as placement agent in connection with the Bridge Offering.
“We believe that this Bridge Offering enables the Company to further move forward with the planned Uplisting, as the Company works to satisfy all national exchange listing requirements,” stated Terrence Norchi, MD, President and CEO of Arch. “We believe the potential resources from the Uplisting will help drive revenue growth of AC5® Advanced Wound System, which has experienced a significant increase in both interest and unit shipments since the issuance of a dedicated unique billing code from The Centers for Medicare & Medicaid Services,” concluded Dr. Norchi.
This news release is not and shall not be deemed to be an offer to sell or the solicitation of an offer to buy any securities.
About Arch Therapeutics, Inc.
Arch Therapeutics, Inc. is a biotechnology company developing a novel approach to stop bleeding (hemostasis), control leaking (sealant) and manage wounds during surgery, trauma and interventional care. Arch is developing products based on an innovative self-assembling barrier technology platform with the goal of making care faster and safer for patients. Arch has received regulatory authorization to market AC5® Advanced Wound System and AC5® Topical Hemostat as medical devices in the United States and Europe, respectively. Arch’s development stage product candidates include AC5-G™, AC5-V® and AC5® Surgical Hemostat, among others.1,2
