On August 31, 2023, Arch Therapeutics, Inc. closed the transaction. The company now issued 1,527,150 shares of Common Stock at a purchase price of $0.275 per share for the gross proceeds of 419,966.25,1,058,743, pre-funded warrants at an issue price $0.274 per Pre Funded Warrant for the gross proceeds of $290,095.582; aggregate gross proceeds of $710,061.832 in the second and final tranche. The company also issued 5,171,786 common warrants at an exercise price of $1 per share.

The Company paid DJ a cash fee equal to 8.0% of the aggregate gross proceeds of the Second Closing. The Company has agreed to issue to DJ, or its designees, warrants to purchase shares of Common Stock equal to 5% of the aggregate number of securities sold in the Second Closing with a total of 441,938 Placement Agent Warrants being issued on September 7, 2023 in connection with the Bridge Offering. 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 March 7, 2024, at a price per share equal to $0.275.