Why Is Arch Therapeutics Inc (OTCMKTS:ARTH) stock Up 10% In a Week

Investors are often on the lookout for stocks that may have recorded gains over a reasonable period of time since it may be difficult to take a stock seriously which may have clocked gains only for a shorter period. By that token, it may be a good time to look into the Arch Therapeutics Inc (OTCMKTS:ARTH) stock which has been in the middle of a steady rally over the course of the past week and has clocked gains of as much as 10% during the period.

Trading Data     

On Thursday, ARTH stock gained marginally to $0.01050063 with more than 99K shares, compared to a volume of 235K shares. The stock moved within a range of $0.0465 – 0.0500 after opening trade at $0.0465.

About The Company

Arch is a biotech company that is involved in creating an innovative treatment for stopping bleeding, managing wounds, and controlling leaking during the course of surgeries and interventional care. The company is currently involved in the development of biosurgical and wound care products through the deployment of its peptide technology platform. The goal of Arch is to bring about an improvement in healing outcomes.

In this context, it is important to note that the company has already managed to get regulatory clearance for its product AC5® Advanced Wound System in the United States and for the AC5® Topical Hemostat in Europe.

Now that you have a semblance of an idea about the nature of the company and its operations, it may be a good idea to take a look into the latest developments with regard to Arch Therapeutics. As it happens, the company was in the news yesterday after it made a key announcement with regards to its capital raising initiatives.

Arch Therapeutics Raises Approximately $3.5 Million in Convertible Note Financing

Arch announced that it had been successful in completing a private placement by way of the issuance of senior secured convertible notes. The notes were offered to select accredited individual investors and institutional investors. The company managed to raise as much as $3.5 million in the form of gross proceeds. However, it should be noted that expenses, agent fees and other fees are going to be deducted from the sum raised by Arch. The notes are going to accrue interest to the tune of as much as 10% and are going to mature in 18 months.

The notes can then be converted into 107872668 shares of the common stock in Arch and the conversion price for the same has been set at $0.0457 a share. In addition to that, it is interesting to note that the company has the option of prepaying the notes.

However, that is not all. In addition to the notes, Arch also issued warrants that could allow the holders to pick up as many as 85,110,664 shares in the company for an exercise price that was set at $0.0497 a share.

Arch announced yesterday that the proceeds from this particular placement are going to be deployed towards its efforts to uplist to a bigger exchange. Terrence Norchi, the Chief Executive Officer and President of the company noted that he expects that Arch is going to get successfully uplisted at some point in the first three months of 2023. It now remains to be seen if the stock can continue to add to its gains.

Key Quote

“The proceeds from this Financing will support our efforts to both uplist to a national exchange, which we expect to complete by the first calendar quarter of 2023, and advance our commercialization plan,” stated Terrence Norchi, MD, President, and CEO of Arch.

Technical Data

ARTH stock is trading above the 10-Day and 20-Day Moving averages of $0.0493 and $0.0491 respectively. However, the stock is trading below the 200-Day moving average of $0.0930. The company has a total market capitalization of $11.85 million The stock is up 25% over the past month.