The following is a press release submitted to SOURCE media through its business wire service.
FRAMINGHAM – Arch Therapeutics, Inc, a developer of novel self-assembling wound care and biosurgical devices, today, February 12, announced it has entered into securities purchase agreements with certain institutional and accredited investors to raise approximately $6.9 million through the issuance of an aggregate 43,125,002 shares of its common stock and warrants to purchase up to an aggregate of 32,343,751 shares of common stock, at a combined purchase price of $0.16 per share of common stock and associated warrant in a private placement.
The closing of the private placement is expected to occur on or about February 17, 2021, subject to the satisfaction of customary closing conditions.
H.C. Wainwright & Co. is acting as exclusive placement agent for the offering.
The warrants have an exercise price of $0.17 per share, are exercisable immediately and have a term of 5.5 years.
The Company currently intends to use the net proceeds from the offering for general corporate purposes, including working capital and capital expenditures.
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. Company is located in Framingham.