Cambridge, Mass.-based device company Arch Therapeutics raised $7.3 million through a stock trade in connection with its reverse merger with Arch Biosurgery.
Arch Therapeutics issued shares of its common stock in exchange for cancellation of equity or rights to acquire equity in Arch Biosurgery, according to a regulatory filing.
The value of the funding round was calculated based on a 50¢ per-share price, which was Arch Therapeutics’ common stock price in a recent separate private placement, the company reported.
The company, which transitioned into a life sciences company after adopting the business plan of newly acquired subsidiary Arch Biosurgery, noted 58 unnamed investors and 6 non-accredited investors in the share exchange, according to SEC filings.
Cambridge, Mass.-based Arch Therapeutics, which adopted the business plan of the newly acquired subsidiary, took on new CEO, director and board chairman last week. The company further shuffled its executive roster this week, naming new finance and operations heads.