Framingham wound care product manufacturer Arch Therapeutics has raised $2.5 million in a registered direct offering.
The company which is developing liquid, gel and solid wound care devices, put 14,285,714 shares of its common stock and warrants at a combined purchase price of $0.175 per share and related warrant. The gross proceeds of the offering are expected to be approximately $2.5 million, before deducting the placement agent’s fees and other estimated offering expenses.
Arch intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.
In December, the company received premarket approval from the U.S. Food and Drug Administration for its AC5 Topical Gel. In a February filing, the company said its current cash on hand would only fund operations into the third quarter and the company will need to raise capital to continue operations.
