TORONTO, May 22, 2019 (GLOBE NEWSWIRE) -- Arch Biopartners Inc., (“Arch” or the “Company”) (TSX Venture: ARCH and OTCQB: ACHFF), announced it has closed the non-brokered, unsecured convertible note (“Note”) financing it disclosed in a press release on May 17, 2019 for net proceeds of CAD $1,000,000 (the “Offering”).
The Note matures on November 22, 2019 and will be convertible, at the option of the holder, into common shares in the capital of the Company (“Common Shares”) at a price per Common Share of $1.21, in the thirty-day period prior to the maturity of the Note.
The Note bears simple interest of 5% per annum, which is payable in-kind by the Company with Common Shares to be issued at then market prices for the Common Shares and subject to TSX Venture Exchange (“TSXV”) approval.
The holder has the option starting October 22, 2019 until November 21, 2019 to extend the term of the Note another 3 years to November 22, 2022. If extended, the Note is convertible into shares only in the thirty days prior to November 22, 2022.
The Note is unsecured and transferable, subject to resale restrictions under applicable securities laws and regulatory requirements.
All securities issued in connection with the Offering are subject to a statutory hold period of four months commencing from today’s closing date.
The Company will primarily use the proceeds to fund the costs of the phase I human trial for Metablok. Metablok (“LSALT peptide”) is the Company’s lead drug candidate for treating acute kidney injury and other organs damaged by inflammation.
The Offering is subject to certain conditions including, but not limited to, the receipt of applicable regulatory approvals, including Final Approval of the TSXV, which previously granted Conditional Approval of the Offering. There are no finder's fees to be paid in connection with the Offering.
There is no material fact or material change about the Company that has not been generally disclosed.
Other Corporate Developments
Arch also announced today the Company’s board has granted a total of 20,000 stock options to a director of one of its foreign subsidiaries pursuant to the Company’s stock option plan and the requirements of the TSX Venture Exchange (TSXV). Each of the stock options is exercisable into one common share of the Company for a period of ten years, exercisable at $1.25 per share. The grant of options will be subject to all necessary regulatory approvals.
About Arch Biopartners
Arch Biopartners Inc. is focused on the development of innovative technologies that have the potential to make a significant medical or commercial impact. Arch has established a diverse portfolio that includes Metablok, a potential treatment for inflammation, sepsis and cancer metastasis; AB569, a potential new treatment for antibiotic resistant bacterial infections in the lung, urinary tract or wounds; and, ‘Borg’ peptide coatings that increase corrosion resistance and decrease bacterial biofilm on various medical grade metals and plastics.
For more information on Arch Biopartners, its technologies and other public documents Arch has filed on SEDAR, please visit www.archbiopartners.com
The Company has 58,662,302 common shares outstanding.
Forward-Looking Statements
All statements, other than statements of historical fact, in this news release are forward looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of the Company. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.