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Arch Biopartners Announces Non Brokered Private Placement Financing

V.ARCH

TORONTO, ONTARIO--(Marketwired - June 14, 2016) - Arch Biopartners Inc., (Arch or the Company) (TSX VENTURE:ACH)(OTCBB:FOIFF) a portfolio based biotechnology company, intends to complete a non-brokered private placement offering of up to 800,000 units priced at $0.50 per unit (the "Units") for gross proceeds of up to $400,000 (the "Offering"). Each Unit will consist of one common share of the Company and one common share purchase warrant (the "Warrant"). Each Warrant will entitle the holder thereof to acquire one common share of the Company at an exercise price of $0.50 per common share for a period of 24 months from the closing date of the Offering. All securities issued in connection with the Offering will be subject to a hold period of four months and one day from the closing date.

A portion or all of the Offering may be completed pursuant to Multilateral CSA Notice 45-318 - Prospectus Exemption for Certain Distributions through an Investment Dealer ("CSA 45-318") and the corresponding blanket orders and rules implementing CSA 45-318 in the participating jurisdictions in respect thereof (collectively with CSA 45-318, the "Investment Dealer Exemption"). In order for the Company to be able to rely on the Investment Dealer Exemption, each subscriber must purchase the shares as principal and obtain advice regarding the suitability of the investment from a person that is registered as an investment dealer in the jurisdiction in which the subscriber is a resident.

The Company intends to use the proceeds from the private placement for the chemistry, manufacturing and controls of its drug candidate, AB569, to enable future human trials to test the drug's efficacy in treating antibiotic resistant infections.

The Offering is expected to close on or about June 20th, 2016 and is subject to certain conditions including, but not limited to, the receipt of applicable regulatory approvals, including approval of the TSXV as well as the satisfaction of other customary closing conditions. Finder's fees may be paid in connection with the Offering. There is no material fact or material change about the Company that has not been generally disclosed.

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 works closely with the scientific community, universities and research institutions to advance and build the value of select preclinical technologies, develop the most promising intellectual property, and create value for its investors.

Arch has established a diverse portfolio that includes AB569, a potential new treatment for antibiotic resistant bacterial infections; MetaMx, which targets elusive brain tumor initiating cells; and, Metablok, a potential treatment for sepsis and cancer metastasis.

For more information on Arch Biopartners, other public documents Arch has filed on SEDAR and its technologies including, please visit www.archbiopartners.com

The Company has 53,189,679 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.

Arch Biopartners Inc.
Richard Muruve
Chief Executive Officer
647-428-7031
info@archbiopartners.com
www.archbiopartners.com

Virtus Advisory Group Inc.
Babak Pedram
Investor Relations
416-644-5081
bpedram@virtusadvisory.com



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