Arch Therapeutics Inc. plans to raise about $2.5 million in gross proceeds via a registered direct offering of units.
The Framingham, Mass.-based biotechnology plans to sell 14,285,714 units at 17.5 cents apiece. Each unit consists of one common share and one warrant to purchase a common share of the company. The warrants come with an exercise price of 22 cents and are valid for five years from the issuance date.
The offering is expected to close on or about Oct. 18.
The company plans to use the net proceeds from the offering for working capital and general corporate purposes.
H.C. Wainwright & Co. is the exclusive placement agent for the offering.