Arch Therapeutics Completes Tenth Closing of Convertible Notes Offering

On January 16, 2025, Arch Therapeutics, Inc. successfully concluded the tenth closing (“Tenth Closing”) of its Convertible Notes Offering. This milestone was achieved with the participation of institutional and accredited individual investors who had previously acquired secured promissory notes from the company.

This Tenth Closing marked the issuance and sale of 2024 First Notes in the aggregate principal amount of $150,000, which included an original issue discount of $25,000. Following deducting issuance discounts, the net proceeds from the sale of the 2024 First Notes amounted to approximately $125,000. The Tenth Closing took place on January 16, 2025.

The net proceeds garnered from the Convertible Notes Offering are planned to be utilized primarily for working capital and general corporate purposes, with no specific allocations at this time.

The 2024 First Notes are slated to mature on February 28, 2025, and bear an interest rate of 10% per annum from the Tenth Closing Date. The notes are convertible into an aggregate of 300,000 shares of Common Stock, subject to certain conditions and restrictions specified in the agreement.

As per the filings, default provisions in the 2024 First Notes include events such as failure to pay owed amounts, insolvency, and breaches of agreements. In the case of default, the notes may become immediately due and payable, with additional premiums applying.

Additionally, Arch Therapeutics entered into agreements such as the Registration Rights Agreement, Security Agreement, and IP Security Agreement with the investors, outlining obligations, collateral, and security interests.

The Convertible Notes Offering, including the issuance and sale of the 2024 First Notes, has not been registered under the Securities Act. The notes were issued in reliance upon exemptions under the Securities Act based on criteria like investor qualifications and restrictions on resale.

The latest Tenth Closing builds upon a series of successful closings earlier in 2024, each contributing to the company’s strategic financial initiatives and positioning it for future growth and development.

This news was extracted from the Form 8-K filed by Arch Therapeutics with the Securities and Exchange Commission.

The Company’s full Form 8-K filing with details on the Convertible Notes Offering can be accessed through the SEC’s online database for further information and disclosure.

This article is a summary and does not constitute an offer to sell or the solicitation of an offer to buy any securities mentioned. Investors are advised to refer to the complete Form 8-K filing for comprehensive details.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Arch Therapeutics’s 8K filing here.

About Arch Therapeutics

Arch Therapeutics, Inc, together with its subsidiaries, operates as a biotechnology company in the United States. It develops and markets products based on its AC5 self-assembling technology platform to stop bleeding and control leaking, as well as manages wounds during surgery, trauma, and interventional care or from disease.