TORONTO, April 22, 2025 (GLOBE NEWSWIRE) -- Arch Biopartners Inc., (“Arch” or the “Company”) (TSX Venture: ARCH and OTCQB: ACHFF), announced today that the University Health Network (UHN) Research Ethics Board has granted approval for Toronto General Hospital to participate in the Company’s ongoing Phase II trial evaluating LSALT peptide for the prevention and treatment of cardiac surgery-associated acute kidney injury (CS-AKI). With this ethics approval in place and all training and preparations complete, ...

Core Points - Arch Biopartners Inc. has closed a non-brokered private placement offering of 145,000 common shares at CAD $1.55 and 90,000 common shares at USD $1.15, totaling gross proceeds of CAD $374,000 [1][2] - The final amount of the offering increased by CAD $24,000 from the initial disclosure on March 5, 2025, and the proceeds will be used for general working capital and research expenses [2] - All common shares issued will be subject to a hold period of four months and one day from the closing date, with finders' fees totaling CAD $5,425 to be paid [3] Company Overview - Arch Biopartners Inc. is focused on preventing acute kidney injury and organ damage caused by inflammation, developing novel drugs targeting the dipeptidase-1 (DPEP1) inflammation pathway [4] - The company's lead drug candidates, LSALT peptide and cilastatin, aim to address significant unmet medical needs related to kidney injury caused by inflammation or toxins [4] - The company has 65,856,366 common shares outstanding [5]

Core Points - Arch Biopartners Inc. announced a non-brokered private placement offering of 225,806 common shares at a price of $1.55 per share, aiming for gross proceeds of $350,000 CAD [1][2] - The proceeds will be utilized for general working capital and expenses not covered by existing funding grants, with the offering set to close on March 6, 2025, pending regulatory approvals [2][3] - All shares issued will have a hold period of four months and one day from the closing date, with finders' fees totaling $13,500 to be paid [3] Company Overview - Arch Biopartners Inc. is focused on late-stage clinical trials aimed at preventing acute kidney injury and organ damage due to inflammation [4] - The company is developing novel drugs targeting the dipeptidase-1 (DPEP1) inflammation pathway, with lead candidates LSALT peptide and cilastatin addressing significant unmet medical needs related to kidney injury [4] - The company has 65,621,366 common shares outstanding [5]

Core Points - Arch Biopartners Inc. has arranged a shares for debt transaction to settle $57,246.57 in interest on a deferred convertible note as of February 1, 2025 [1][2] - The transaction involves issuing 31,112 common shares at a deemed price of $1.84, pending approval from the TSX Venture Exchange [2][3] - The total notional value of the note is $500,000 CAD, which will convert into 561,798 common shares at maturity [3] Company Overview - Arch Biopartners Inc. is focused on preventing acute kidney injury and organ damage caused by inflammation, developing drugs targeting the dipeptidase-1 (DPEP1) inflammation pathway [4] - The lead drug candidates include LSALT peptide and cilastatin, aimed at addressing significant unmet medical needs related to kidney injury [4] - The company has 64,940,956 common shares outstanding [5]

Company Overview - Arch Resources, Inc. is a leading producer of high-quality metallurgical products for the global steel industry, operating modern and efficient mines that set industry standards for safety and environmental stewardship [2] - CONSOL Energy Inc. is based in Canonsburg, Pennsylvania, and specializes in the production and export of high-Btu bituminous thermal coal and metallurgical coal, with significant operations in the Northern Appalachian Basin [3] - CONSOL's Pennsylvania Mining Complex has a production capacity of approximately 28.5 million tons of coal per year, and the company controls around 1.3 billion tons of coal reserves across major coal-producing basins in the eastern United States [3] Merger Announcement - Arch Resources and CONSOL Energy announced that stockholders of both companies approved all proposals related to their pending combination, which is expected to close on January 14, 2025 [1] - The combined entity will be renamed "Core Natural Resources, Inc." and will be headquartered in Canonsburg, Pennsylvania, with its common stock trading under the ticker symbol "CNR" starting January 15, 2025 [1]

Core Insights - Arch Biopartners Inc. has received provincial ethics approval for its Phase II trial of LSALT peptide aimed at preventing and treating cardiac surgery-associated acute kidney injury (CS-AKI) [1][3] - The trial will recruit a total of 240 patients across multiple sites, including Toronto General Hospital, St. Michael’s Hospital, University of Calgary Hospital, and five clinical sites in Turkey [2][3][4] - The primary objective of the trial is to assess the percentage of subjects experiencing acute kidney injury within seven days post cardiac surgery, following KDIGO criteria [4] Company Developments - Arch Biopartners has entered a one-year marketing and consulting contract with Outside The Box Capital Inc. to enhance awareness of the company’s news [10] - The company will pay $25,000 per month and grant 150,000 stock options with a strike price of $2.00 per share as part of the contract [11] - Arch Biopartners is focused on developing drugs targeting the dipeptidase-1 (DPEP1) inflammation pathway, with LSALT peptide being its lead candidate for preventing kidney injury [12] Clinical Context - CS-AKI is a common complication following on-pump cardiac surgeries, with a prevalence rate of up to 30%, leading to increased morbidity and mortality [8] - LSALT peptide aims to address the unmet medical need for therapeutic treatments to prevent AKI in patients undergoing cardiac surgery [6][12] - The drug has shown promise in pre-clinical models for preventing ischemia-reperfusion injury to the kidneys, providing a scientific basis for its use in the ongoing trial [7]

Group 1: Proposed Mergers - Universal Stainless & Alloy Products, Inc. is set to merge with Aperam for $45.00 per share in cash, resulting in Universal becoming a wholly owned subsidiary of Aperam [1] - Cyclo Therapeutics, Inc. will be acquired by Rafael Holdings, with Cyclo shares valued at $0.95 each [2] - Arch Resources, Inc. has a definitive agreement with CONSOL Energy Inc. for 1.326 shares of CONSOL common stock for each Arch stock, leading to Arch shareholders holding approximately 45% ownership in the combined company post-transaction [3] - The First of Long Island Corporation is merging with ConnectOne Bancorp, Inc. for 0.5175 shares of ConnectOne common stock for each share of Long Island common stock [3] Group 2: Shareholder Involvement - Kuehn Law is investigating potential claims related to the proposed mergers, focusing on whether the Boards acted to maximize shareholder value and disclosed material information [1] - Shareholders are encouraged to get involved to contribute to the integrity and fairness of financial markets, with Kuehn Law covering all case costs [4]

Core Viewpoint - Arch Resources reported a net loss of $6.2 million and an adjusted profit of $44.2 million for Q3 2024, indicating a year-over-year decline in revenues and profits [1]. Financial Performance - The company experienced a net loss of $6.2 million in Q3 2024 [1]. - Adjusted profits for the same period were reported at $44.2 million [1]. Company Overview - Arch Resources is recognized as one of the major coal miners in the United States, producing both thermal and metallurgical coal [1].

Revenue and Sales Performance - For the three months ended September 30, 2024, coal sales revenue was approximately $617.9 million, a decrease of $126.7 million or 17.0% compared to the same period in 2023[115]. - Tons sold during the same period decreased by approximately 3.0 million tons, or 15.5%, totaling 16,214 tons[115]. - Revenues from coal sales in the first nine months of 2024 were $1,906,840 thousand, down $464,986 thousand, or 19.6%, from $2,371,826 thousand in the same period of 2023[124]. - Total GAAP revenues for the consolidated company were $617.90 million for the three months ended September 30, 2024, compared to $744.60 million in the same period of 2023[144]. - The company reported total GAAP revenues of $1.91 billion for the nine months ended September 30, 2024, compared to $2.37 billion in the same period of 2023[146]. Coal Market Conditions - Metallurgical coal sales decreased by approximately $70.9 million primarily due to decreased pricing[115]. - Thermal coal sales decreased by approximately $55.8 million due to reduced sales volume to domestic utility customers[115]. - Domestic thermal coal consumption was pressured by low power demand, low natural gas prices, and increased renewable generation, leading to elevated utility coal stockpiles[113]. - The global metallurgical coal market is experiencing softness due to oversupply and economic constraints, particularly in Europe and the Americas[106]. - The availability of discounted Russian coal in Asian markets is expected to continue, impacting competition in the coal market[107]. Costs and Expenses - Cost of sales for Q3 2024 decreased by approximately $38.3 million, or 6.4%, compared to Q3 2023, primarily due to reduced sales sensitive costs and lower repairs and supplies costs[117]. - Total costs, expenses, and other for the first nine months of 2024 were $1,849,265 thousand, a decrease of $112,693 thousand compared to the same period in 2023[126]. - Selling, general, and administrative expenses decreased by approximately $4.4 million in the first nine months of 2024 compared to the same period in 2023, mainly due to reduced compensation costs[129]. - The company recorded $6.6 million in severance costs related to a voluntary separation plan accepted by approximately 140 employees in the Thermal Segment during Q3 2024[121]. - Non-service related pension and postretirement benefit credits decreased by $4,596 thousand in the first nine months of 2024 compared to the same period in 2023[133]. Merger and Financial Transactions - The proposed merger with CONSOL Energy Inc. involves an all-stock transaction where each share of Arch common stock will convert into 1.326 shares of CONSOL common stock[105]. - Merger-related costs of $7,002 thousand were recorded in Q3 2024 following the Merger Agreement entered on August 20, 2024[120]. - The total long-term debt increased by $20 million under the Term Loan during the first three months of 2024, with no other material changes to contractual obligations reported[165]. Cash Flow and Liquidity - Cash provided by operating activities decreased by approximately $241.5 million to $212.4 million for the nine months ended September 30, 2024, compared to $453.8 million in the prior year[167]. - Cash used in investing activities increased by approximately $15.2 million, primarily due to increased capital expenditures and net short-term investment activity[168]. - Cash used in financing activities declined by $241.4 million, driven by a reduction in dividends paid by approximately $114.8 million and a decrease in share repurchases of $91.2 million[169]. - The company ended the first nine months of 2024 with cash, cash equivalents, and short-term investments of $255.9 million, and total liquidity of $359.8 million[159]. - The company expects to maintain minimum liquidity levels of approximately $250 million to $300 million, primarily held in cash[159]. Production and Sales Commitments - Planned production levels at thermal operations are aligned with existing sales commitments, with a focus on maximizing export opportunities[114]. - The Company has metallurgical coal sales commitments for 2024, including 1.5 million tons of North America priced coking coal at $157.04 per ton and 5.2 million tons of seaborne priced coking coal at $140.68 per ton[173]. Segment Performance - Adjusted EBITDA for the Metallurgical segment decreased to $54.17 million for the three months ended September 30, 2024, down from $128.32 million in the same period of 2023, a decline of $74.16 million[137]. - Adjusted EBITDA for the Thermal segment decreased for the three months ended September 30, 2024, due to decreased tons sold and increased cash cost per ton sold[141]. - For the nine months ended September 30, 2024, the Metallurgical segment sold 6.77 million tons, down from 6.96 million tons in the same period of 2023, a decrease of 196,000 tons[138]. - The total tons sold for the nine months ended September 30, 2024, were 6,766 for metallurgical coal and 37,662 for thermal coal, compared to 6,962 and 50,104 respectively in the same period of 2023, indicating a decline in thermal coal sales[152][153]. Taxation - The effective tax rate for Q3 2024 was 50.8%, significantly higher than the U.S. federal statutory rate of 21%, primarily due to the income tax benefit for excess percentage depletion[123]. - The company experienced a net loss of $887 thousand from the provision for income taxes in the first nine months of 2024, a decrease of $67,726 thousand compared to a benefit of $66,839 thousand in 2023[134].

Financial Data and Key Metrics Changes - The third quarter marked a significant transition for the company, with expectations for long-term value creation and growth driven by a merger with CONSOL Energy and operational transitions in metallurgical longwall mines [6][7] - The company declared a fixed dividend of $0.25 per share, totaling $4.6 million, payable on November 26 [8] - Production volumes were depressed due to throttled back operations in the metallurgical segment, leading to slightly higher normal operating costs [10] Business Line Data and Key Metrics Changes - The thermal segment saw a significant turnaround during Q3, benefiting from improved performance in the Powder River Basin operations due to cost-cutting measures and better alignment between stripping activities and sales volumes [12] - The West Elk mine operated well, although results were dampened by lower realizations related to legacy contracts, most of which will expire at the end of the year [12][13] - The metallurgical segment is expected to see a significant step-up in performance in the coming year, particularly with the roll-off of low-priced contracts and the transition to thicker, lower-cost reserves [13] Market Data and Key Metrics Changes - Global coking coal markets are believed to be closer to balance than current pricing suggests, with supply constraints and increased Chinese seaborne imports of coking coal [15][16] - The high-rank seaborne thermal market appears tight, benefiting from years of investment in new and replacement supply [17] Company Strategy and Development Direction - The merger with CONSOL Energy is expected to create a global industry leader, enhancing operational platforms and expanding logistics and export capabilities [21][24] - The company aims to unlock significant synergies from the merger, with projected annual cost savings of $110 million to $140 million [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational transitions and the potential for improved performance in Q4, despite challenges faced in Q3 [43][44] - The company anticipates a positive step change in execution from operations after the completion of the longwall moves [11][44] - Management noted that the supply side in Appalachia is under pressure, which could lead to a reduction in production from smaller mines [61][63] Other Important Information - The merger is expected to close in Q1 2025, with stockholder votes pending [20] - The company is focused on capturing synergies in logistics, marketing, and procurement post-merger [23] Q&A Session Summary Question: Update on contracts for 2025 and pricing expectations - Management indicated that they have committed about 0.5 million tons at a price just under $150, with expectations that North American business could decrease significantly [27][28] - For West Elk, legacy contracts rolling off are expected to be replaced with prices as much as $30 higher [31] Question: Thoughts on High-Vol A markets and pricing - Management acknowledged that the High-Vol A market is somewhat soft but not far from balance, with significant appetite for their products in Asia [34][36] Question: Expectations for Q4 performance - Management expects Q4 performance to be similar to Q3, with potential for improvement as operations ramp up [44][45] Question: Role of thermal assets in the merger - West Elk is seen as a key player in the high-quality seaborne thermal business, while the future of the Powder River Basin operations remains uncertain [46][47] Question: Supply side stress in Appalachia - Management noted that labor pressures have diminished and supply availability is improving, indicating a potential supply pullback in the market [60][62]