Arch Therapeutics, Inc. announced that it has entered into a private placement agreement with certain institutional and accredited individual investors and issued 1,749,245 common shares at an issue price of $0.275 per share for gross proceeds of $481,042.375 and 4,996,199 pre-funded warrants at a purchase price of $0.274 per pre-funded warrant for gross proceeds of 1,368,958.526 for aggregate gross proceeds of $1,850,000.901 on July 7, 2023. The company also issued 13,490,888 common warrants at an exercise price of $1 per share. The company paid placement agent a cash fee equal to 8% of the aggregate gross proceeds of the bridge offering and reimbursement of expenses of $50,000.

Additionally, the company has agreed to issue to agent, or its designees, warrants to purchase that number of shares of common stock equal to 5% of the aggregate number of securities sold. The placement agent warrants will be exercisable at any time and from time to time, in whole or in part, during the five-year period commencing six months from the closing of the bridge offering, at a price per share equal to $0.275. The company has received $1,850,000.901 in the first tranche.