Replies to post #9272 on Arch Therapeutics Inc (ARTH)

[Regis999]

So rather than doing a straight up IPO in 2013 and raising the $ 33.7 million that they raised thus far they elected to do a reverse merger with a warrant strategy that backfired when the stock price went down in stead of up.

This is in the Form 10-K

They were private from 2006 until 2013 where Norchi et al financed.

I have written about this in the past. This mess up created the opportunity that we have today and in the past. They should have done a clean IPO.

ARTH is following the marketing gameplan laid out by Closure Medical (1996-2004) when it was acquired by JNJ in early 2005.

The profit margins were very large and the marketing JV's lucrative for Closure with upfront fees. Closure's medical applications were narrow compared to ARTH.