Arca direct offering raises $6.1M of $9.4M goal

WESTMINSTER — Arca biopharma Inc. (Nasdaq: ABIO), a Westminster pharmaceutical firm with a drug candidate that’s showed promise in treating blood clotting seen in some COVID-19 patients, raised $6.1 million this week in a direct stock offering, a significantly lower sum than the firm’s previously stated goal of $9.4 million.

Arca announced Monday it would sell to institutional investors 348,000 shares of common stock at $9 per share and pre-funded warrants to purchase 694,222 shares of common stock at $8.999. Ultimately, only 348,000 shares of common stock and 325,500 pre-funded warrants were sold.

“ARCA anticipates that the net proceeds from this offering will be used to initiate its clinical trial of AB201 and for working capital and general corporate purposes,” according to a U.S. Securities and Exchange Commission filing. 

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It’s been a rollercoaster ride for Arca’s stock over the past several days since the firm said it will begin development to see if its drug candidate AB201 could be used to reduce blood clots and inflammatory responses induced by the immune system for certain patients of coronavirus.

On May 28, Arca’s stock quadrupled in value in a single day of trading to close at $19.72. Then on Monday, after the direct offer was announced, it tumbled more than 26.98% to $9.20. In early trading Wednesday it dropped 5.39% to less than $8.60.