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Arch Therapeutics Announces $2.5 Million Registered Direct Offering
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FRAMINGHAM, Mass., Oct. 17, 2019 (GLOBE NEWSWIRE) -- Arch Therapeutics, Inc. (OTCQB: ARTH) ("Arch" or the "Company"), developer of novel liquid, gel and solid hemostatic and wound care devices, today announced that it has entered into definitive agreements with several institutional and accredited investors for the purchase in a registered direct offering of 14,285,714 shares of its common stock and warrants to purchase up to 14,285,714 shares of its common stock, at a combined purchase price of $0.175 per share and related warrant. The offering is expected to close on or about October 18, 2019, subject to the satisfaction of customary closing conditions.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
The warrants have an exercise price of $0.22 per share of common stock, will be exercisable immediately upon issuance and will expire five years from the issuance date.
The gross proceeds of the offering are expected to be approximately $2.5 million, before deducting the placement agent’s fees and other estimated offering expenses. Arch currently intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.
The securities described above are being offered by Arch pursuant to a “shelf” registration on Form S-3 (File No. 333-213878) previously filed with the Securities and Exchange Commission (the “SEC”) on September 30, 2016, amended on October 17, 2016 and declared effective by the SEC on October 20, 2016. The offering of the securities will be made only by means of a prospectus supplement that forms a part of the registration statement. A final prospectus supplement and accompanying base prospectus relating to the securities being offered will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying base prospectus may be obtained, when available, on the SEC’s website at www.sec.gov or by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at 646-975-6996 or e-mail at placements@hcwco.com.
