FRAMINGHAM, Mass., July 07, 2022 (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 through the issuance of senior secured convertible notes (the "Notes ") with gross proceeds of approximately $3.5 million from select institutional and accredited individual investors (the "Financing "), before deducting placement agent fees and other estimated fees and expenses related to the private placement. The Notes earn interest at 10%, mature in 18 months, are convertible into an aggregate of 107,872,668 shares of common stock at a conversion price of $0.0457 per share, and, among other things, may be prepaid by the Company in connection with an uplisting transaction subject to adjustment as a result of certain time-based prepayment premiums set forth in the Notes. In connection with the Financing, the Company also issued warrants to purchase up to an aggregate of 85,110,664 shares of common stock at an exercise price of $0.0497 per share and 12,766,600 inducement shares. Additional information regarding the terms of the Financing may be found on the Form 8-K that will be filed with the Securities & Exchange Commission (the "SEC ").
The Company retained a placement agent in connection with the private placement of $2.4 million of the Notes to the institutional investors.
"The proceeds from this Financing will support our efforts to both uplist to a national exchange, which we expect to complete by the first calendar quarter of 2023, and advance our commercialization plan," stated Terrence Norchi, MD, President and CEO of Arch. "We continue to build momentum among providers impressed by the ability of AC5 Advanced Wound System to provide improved outcomes for patients, including those with challenging wounds that were ...
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