TORONTO, Jan. 24, 2019 (GLOBE NEWSWIRE) -- Arch Biopartners Inc., (“Arch” or the “Company”) (TSX Venture: ARCH
and OTCQB: ACHFF), announced it has arranged a non-brokered, unsecured convertible note (“Note”) financing for gross proceeds of
CAD $500,000 (the “Offering”).
The Note matures on January 24, 2022 and will be convertible, at the option of the holder, into common shares in
the capital of the Company (“Common Shares”) at a price per Common Share of $1.27, in the thirty-day period prior to the maturity
of the Note.
The Note bears simple interest of 5% per annum, which is payable in-kind by the Company with Common Shares to be
issued at then market prices for the Common Shares and subject to TSX Venture Exchange (“TSXV”) approval in each instance.
The holder has the option starting October 24, 2021 until December 24, 2021 to extend the term of the Note
another 2 years to January 24, 2024.
The Note is unsecured and transferable, subject to resale restrictions under applicable securities laws and
regulatory requirements.
All securities issued in connection with the Offering are subject to a statutory hold period of four months
commencing on the closing date of the Offering, which is expected to be January 28, 2019.
The Company will primarily use the proceeds to fund the final preclinical tasks for Metablok and the initial
costs of the phase I human trial for Metablok. Metablok (“LSALT peptide”) is the Company’s drug candidate for inhibiting
acute kidney injury, septic shock and cancer metastasis.
The Offering is subject to certain conditions including, but not limited to, the receipt of applicable
regulatory approvals, including Final Approval of the TSXV, which previously granted Conditional Approval of the Offering. There
are no finder's fees to 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 has established a diverse portfolio that includes Metablok, a potential
treatment for inflammation, sepsis and cancer metastasis; AB569, a potential new treatment for antibiotic resistant bacterial
infections in the lung, urinary tract or wounds; and, ‘Borg’ peptide coatings that increase corrosion resistance and decrease
bacterial biofilm on various medical grade metals and plastics.
For more information on Arch Biopartners, its technologies and other public documents Arch has filed on SEDAR,
please visit www.archbiopartners.com
The Company has 58,532,302 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.
For more information, please contact: Richard Muruve Chief Executive Officer Arch Biopartners, Inc. 647-428-7031 info@archbiopartners.com
