Arch Therapeutics Secures $2.85 Million Private Placement
11 February 2014 - 1:00AM
Marketwired
Arch Therapeutics Secures $2.85 Million Private Placement
WELLESLEY, MA--(Marketwired - Feb 10, 2014) - Arch Therapeutics,
Inc. (OTCQB: ARTH) ("Arch" or the "Company"), a life sciences
company and developer of the AC5 Surgical Hemostatic Device™, a
novel product aimed at controlling bleeding and fluid loss in order
to provide faster and safer surgical and interventional care has
closed a previously announced private placement to accredited
individual and institutional investors (the "Investors").
The transaction provided approximately $2.77 million of net
proceeds to the Company, after expenses. Arch intends to use the
offering proceeds to advance its hemostasis development program,
predominantly focusing on AC5 Surgical Hemostatic Device™, and for
general corporate purposes.
Company President and CEO, Dr. Terrence Norchi comments, "We
have great expectations for this year and the years to come. The
proceeds from this transaction will be a significant contributor to
our achieving the planned 2014 milestones previously described to
the investment community. We are grateful to our current and new
investors for their support."
The Company did not engage a placement agent in connection with
the private placement. In addition to executing a securities
purchase agreement (the "SPA"), which governed the transaction,
Arch also entered into a registration rights agreement with the
Investors, pursuant to which Arch shall file at least one
registration statement with the U.S. Securities & Exchange
Commission (the "SEC") registering the shares and warrant shares
for resale under the Securities Act of 1933. A more fulsome
descriptions of the terms and provisions of the SPA, Registration
Rights Agreement, each series of the Warrants, as well as copies of
each such document, are contained in the Current Report on Form 8-K
filed by the Company on January 31, 2014, and the full text of
those descriptions and documents is incorporated herein by
reference.
This press release is not and shall not constitute an offer to
sell or a solicitation of an offer to buy any of the securities
described, and shall not constitute an offer, solicitation, or sale
in any jurisdiction in which such offer, solicitation, or sale is
unlawful.
About Arch Therapeutics, Inc. (OTCQB: ARTH)
Arch Therapeutics, Inc. is a medical device company developing a
novel approach to stop bleeding (hemostasis) and control leaking
(sealant) during surgery and trauma care. Arch is developing
products based on an innovative self-assembling peptide technology
platform to make surgery and interventional care faster and safer
for patients. Arch's flagship development stage product candidate,
known as AC5 Surgical Hemostatic Device™, is being designed to
achieve hemostasis in minimally invasive and open surgical
procedures. Find out more at www.archtherapeutics.com.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that
term is defined in Section 27(a) of the Securities Act of 1933 and
Section 21(e) of the Securities Exchange Act of 1934. Statements in
this press release that are not purely historical are
forward-looking statements and include any statements regarding
beliefs, plans, expectations or intentions regarding the future.
Such forward-looking statements include, among others, statements
regarding the completion and timing of the private offering, the
Company's planned use of any proceeds received from the private
offering, references to novel technologies and methods, the
Company's business and product development plans and projections,
or market information. Actual results could differ from those
projected in any forward-looking statements due to numerous
factors. Such factors include, among others, market and other
general economic conditions, the Company's and the investors'
ability to satisfy the conditions required to close the private
offering, the inherent uncertainties associated with developing new
products or technologies and operating as a development stage
company, our ability to raise the additional funding we will need
to continue to pursue our business and product development plans,
our ability to develop and commercialize products based on our
technology platform, and market conditions. These forward-looking
statements are made as of the date of this news release, and the
Company assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
Although the Company believes that any forward-looking statements
contained in this press release are based on reasonable beliefs and
assumptions, any such beliefs or assumptions may prove to be
inaccurate. Investors should consult all of the information set
forth herein and should also refer to the risk factors and other
disclosures contained in the reports and other documents we file
with the Securities and Exchange Commission, available at
www.sec.gov.
On Behalf of the Board, Terrence W. Norchi, M.D. Arch
Therapeutics, Inc.
Contact: ARTH Investor Relations Toll Free: +1-855-340-ARTH
(2784) (US and Canada) Email: investors@archtherapeutics.com
Website: www.archtherapeutics.com
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