Arch Therapeutics Completes Ninth Closing of Convertible Notes Offering

Arch Therapeutics, Inc. (OTCMKTS:ARTH) recently announced the completion of its ninth closing of the Convertible Notes Offering on November 4, 2024. The company, as detailed in its 8-K SEC filing, finalized the sale of 2024 First Notes to institutional and accredited individual investors. The issuance of the 2024 First Notes, convertible into shares of Common Stock, occurred as part of the Convertible Notes Offering previously authorized by the Company’s board of directors.

The net proceeds from the sale of the 2024 First Notes totaled approximately $100,000 after deducting issuance discounts. These notes become due on November 30, 2024, with interest accruing at a rate of 10% per annum on the unpaid principal balance. Holders of the 2024 First Notes have the option to convert these notes into an aggregate of 240,000 shares of Common Stock.

The 2024 First Notes are subject to a variety of provisions, including a Conversion Price of $0.50 per share and a provision preventing conversion if it would result in beneficial ownership exceeding 4.99% of the outstanding Common Stock. Additionally, the notes contain events of default clauses, which include the Company’s failure to pay principal or interest, insolvency, and breaches of material terms under the notes.

Furthermore, the Company entered into agreements such as a Registration Rights Agreement and Security Agreement with investors, providing for the registration of Conversion Shares and collateral interests in the company’s assets. These transactions were completed in connection with the issuance of the 2024 First Notes.

The Company outlined its intention to utilize the net proceeds primarily for working capital and general corporate purposes, without allocating specific amounts for particular purposes. Arch Therapeutics emphasized that the sale of the 2024 First Notes was not registered under the Securities Act, relying on exemptions for the offering.

Investors and stakeholders can find detailed information about the recent Convertible Notes Offering and related agreements in the company’s SEC filing.

This article is based on the recent 8-K SEC filing by Arch Therapeutics detailing the completion of their ninth closing of the Convertible Notes Offering.

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.