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Arch Biopartners Closes First Tranche of Private Placement

V.ARCH

TORONTO, ONTARIO--(Marketwired - June 23, 2016) - Arch Biopartners Inc., (Arch or the Company) (TSX VENTURE:ACH)(OTCBB:FOIFF) announced today it has raised $330,000 by closing the first tranche of the non-brokered private placement it announced in a press release June 14, 2016 (The "Offering"). Pursuant to the terms of the Offering, Arch issued 660,000 Units at a price of $0.50 per unit (the "Units"). Each Unit consists of one common share of the Company and one common share purchase warrant (the "Warrant"). Each Warrant entitles the holder thereof to acquire one common share of the Company at an exercise price of $0.50 per common share for until 5:00PM EST on June 22, 2018.

Arch received Conditional Acceptance from the TSX Venture Exchange for this private placement on June 20, 2016.

All securities issued in connection with this offering will be subject to a statutory hold period expiring on October 23, 2016. Finder's fees paid in connection with the first tranche of the Offering totalled $2,500 plus 5,500 broker warrants with the same terms as the Warrants.

The Company intends to use the proceeds from the Offering to initiate chemistry, manufacturing and controls for its drug candidate, AB569, to enable future human trials testing the drug's efficacy in treating antibiotic resistant lung and urinary tract infections.

The Offering is subject to certain conditions including, but not limited to, the receipt of applicable regulatory approvals, including Final Approval of the TSXV before July 29, 2016. Management of the Company expects a second tranche of up to $70,000 to close on or before the date of Final Approval, pursuant to the terms of the first tranche described herein.

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 now has 53,849,679 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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