Arch Therapeutics hit its nearly $2.9 million target with a private placement announced late last year.
The Wellesley, Mass.-based medical sealant maker said the deal as a “private stock placement fundraising effort,”according to a previous MassDevice report.
Arch Therapeutics develops medical sealants and hemostasis products for use during surgeries. The company’s marquee device is the AC5 Surgical Hemostatic for minimally invasive and open surgical procedures. Arch said it will net about $2.8 million from the offering, which is plans to use to "advance its hemostasis development program, predominantly focusing on AC5 Surgical Hemostatic Device, and for general corporate purposes," according to a press release.
"We have great expectations for this year and the years to come. The proceeds from this transaction will be a significant contributor to our achieving the planned 2014 milestones previously described to the investment community. We are grateful to our current and new investors for their support," president & CEO Dr. Terrence Norchi said in prepared remarks.
The offering to 9 unnamed "institutional and high net worth" investors included 11.4 million shares of common stock at a price of 25¢ per share. Investors will also receive warrants to purchase up to 11.4 million additional shares at an exercise price of either 30¢, 35¢ or 40¢ apiece, depending on whether investors purchase from the Series A, B or C warrants, according to a regulatory filing.
Arch Therapeutics completed a share swap and reverse merger last year to expand into a life sciences company. Arch reported a $7.3 million financing through a share-swap related to its reverse merger with Arch Biosurgery, which expanded the company’s range of products and services.