FRAMINGHAM, Mass., Jan. 17, 2023 (GLOBE NEWSWIRE) -- Arch Therapeutics, Inc. (OTCQB: ARTH) ("Arch" or the "Company"), a marketer and developer of novel self-assembling wound care and biosurgical products, today announced that it will effect a 1-for-200 reverse stock split of its outstanding and authorized common stock, effective at 5:00 p.m. (EST) on January 17, 2023. Arch’s common stock will continue to trade on the OTCQB under the symbol “ARTHD” and under a new CUSIP number, 03939W 208. Arch’s common stock will begin trading on a reverse stock split-adjusted basis on the OTCQB when the market opens on January 18, 2023.
The reverse stock split was implemented by the Company in connection with its application to uplist the Company’s common stock to a national exchange. The reverse stock split is intended to fulfill the stock price requirements for initial listing on a national exchange.
As a result of the reverse stock split, every two hundred pre-split shares of common stock outstanding and authorized will automatically combine into one new share of common stock without any action on the part of the shareholders. Following the consummation of the reverse stock split, the number of issued and outstanding shares of common stock will be reduced from 249,936,370 to approximately 1,249,682 and the number of authorized shares of common stock will be 12,000,000.
No fractional shares will be issued in connection with the reverse stock split. Any fractional shares of common stock resulting from the reverse stock split will be rounded up to the nearest whole post-split share and no shareholders will receive cash in lieu of fractional shares. The reverse stock split will also apply to common stock issuable upon the conversion of Arch’s outstanding convertible notes and the exercise of Arch’s outstanding warrants, restricted stock units, and stock options, with adjustments to the conversion prices and exercise prices thereof as required by the terms of those securities.
On September 29, 2022, the Company’s shareholders approved the reverse stock split and granted the Company’s board of directors discretionary authority to select a ratio for the split ranging from 1-for-100 to 1-for-200 as well as the increase in authorized shares by 300%. On January 9, 2023, the board of directors approved the reverse stock split at a ratio of 1-for-200 and the increase in authorized shares by 300% to be effective on January 17, 2023.
Empire Stock Transfer Inc. is acting as the exchange agent and transfer agent for the reverse stock split. Shareholders holding their shares in book-entry form or in brokerage accounts need not take any action in connection with the reverse stock split. Beneficial holders are encouraged to contact their bank, broker or custodian with any procedural questions.
Located in Framingham, Massachusetts, Arch is a biotechnology company with a novel approach to stop bleeding (hemostasis), control leaking (sealant), and manage wounds during surgery, trauma, and interventional care. Arch is developing wound care and biosurgical products based on an innovative self-assembling peptide technology platform with the goal of improving healing outcomes for patients. Arch has received regulatory clearance to market AC5® Advanced Wound System in the United States and AC5® Topical Hemostat in Europe. Arch's development stage product pipeline includes AC5-GTM for endoscopic resection of gastrointestinal tumors, AC5-V® for hemostasis during vascular surgery, and AC5 Surgical Hemostat for general surgical hemostasis, among others.1,2
NOTICE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking statements” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, the implementation of the reverse stock split and the potential uplisting of our shares of common stock to a national exchanges. Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents we file with the SEC, available at www.sec.gov.
1 AC5-G, AC5-V, and AC5 Surgical Hemostat are currently investigational devices limited by law to investigational use.
2 AC5, AC5-G, AC5-V and associated logos are trademarks and/or registered trademarks of Arch Therapeutics, Inc. and/or its subsidiaries.
ARTH Investor Relations
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Chief Financial Officer
Arch Therapeutics, Inc.