ARCA biopharma Provides Update Regarding Special Dividend Amount in Connection with the Proposed Merger with Oruka Therapeutics Westminster, CO

ARCA biopharma Provides Update Regarding Special

Dividend Amount in Connection with the Proposed Merger with Oruka Therapeutics

Westminster, CO, August 26, 2024 - ARCA biopharma, Inc.

(NASDAQ: ABIO) ("ARCA") today announced an update to the previously announced final amount of the special cash dividend (the

"Special Dividend"), which will now equal $1.613 per share of ARCA's common stock, payable on August 28, 2024, to ARCA's

stockholders of record as of August 26, 2024. The Special Dividend was declared by ARCA's Board of Directors on August 16, 2024,

in connection with the previously announced merger (the "Merger") with Oruka Therapeutics, Inc. ("Oruka"), pursuant

to the Agreement and Plan of Merger and Reorganization, dated April 3, 2024 (the "Merger Agreement"). The exact amount of

the Special Dividend was calculated in accordance with the Merger Agreement and based on ARCA's reasonable, good faith approximation

of the amount by which ARCA's net cash, as determined prior to the closing of the Merger, will exceed $5,000,000.

Because the Special Dividend exceeds 25% of ARCA's stock price

on the declaration date, it is subject to an ex-dividend date of one business day after the payment date pursuant to the rules of The

Nasdaq Stock Market LLC ("Nasdaq"). Accordingly, Nasdaq has set August 29, 2024 as the ex-dividend date for the Special Dividend.

In addition, ARCA understands that trades of ARCA's common stock entered into during the due bill period beginning August 25, 2024

(the business day before the record date for the Special Dividend) and through August 28, 2024 (the "Due Bill Period") will

have a due bill attached for the Special Dividend. Due bills obligate sellers of ARCA common stock to deliver the Special Dividend to

the buyer. This means that persons who purchase ARCA common stock during the Due Bill Period (even if the trade will settle after the

Due Bill Period) are entitled to receive the Special Dividend, and persons who sell the stock during the Due Bill Period (even if the

trade will settle after the Due Bill Period) are not entitled to the Special Dividend. Accordingly, if an investor wishes to receive the

Special Dividend, the investor will need to hold the securities through and including the payment date of August 28, 2024.

The due bill obligations are settled customarily between the brokers

representing the buyers and sellers of the stock. Buyers and sellers of ARCA common stock should consult with their broker before trading

to ensure they understand the effect of Nasdaq's due bill procedures. ARCA has no obligations for either the amount of the due bill

or the processing of the due bill.

As previously announced, the closing of the Merger is expected to occur

on August 29, 2024, assuming the satisfaction or waiver of all conditions under the Merger Agreement.

About ARCA biopharma

ARCA biopharma is dedicated to developing

genetically and other targeted therapies for cardiovascular diseases through a precision medicine approach to drug development. For more

information, please visit www.arcabio.com or follow the company on LinkedIn.

About Oruka Therapeutics

Oruka Therapeutics is developing novel biologics

designed to set a new standard for the treatment of chronic skin diseases. Oruka's mission is to offer patients suffering from chronic

skin diseases like plaque psoriasis the greatest possible freedom from their condition by achieving high rates of complete disease clearance

with dosing as infrequently as one or twice a year. Oruka is advancing a proprietary portfolio of potentially best-in-class antibodies

that were engineered by Paragon Therapeutics and target the core mechanisms underlying plaque psoriasis and other dermatologic and inflammatory

diseases. For more information, visit www.orukatx.com.

Forward-Looking Statements

This communication contains forward-looking

statements (including within the meaning of Section 21E of the Exchange Act and Section 27A of the Securities Act) concerning

ARCA, Oruka, the proposed transactions and other matters. These forward-looking statements include express or implied statements relating

to the structure, timing and completion of the proposed Merger; the combined company's listing on Nasdaq after closing of the proposed

Merger; expectations regarding the ownership structure of the combined company; the expected executive officers and directors of the combined

company; each company's and the combined company's expected cash position at the closing of the proposed Merger (including

completion of Oruka's private placement) and cash runway of the combined company; the expected contribution and payment of dividends

in connection with the Merger, including the timing thereof; the future operations of the combined company; the nature, strategy and focus

of the combined company; the development and commercial potential and potential benefits of any product candidates of the combined company;

anticipated preclinical and clinical drug development activities and related timelines, including the expected timing for data and other

clinical results; the combined company having sufficient resources to advance its pipeline candidates; and other statements that are not

historical fact. The words "anticipate," "believe," "contemplate," "continue," "could,"

"estimate," "expect," "intends," "may," "might," "plan," "possible,"

"potential," "predict," "project," "should," "will," "would" and

similar expressions (including the negatives of these terms or variations of them) may identify forward-looking statements, but the absence

of these words does not mean that a statement is not forward-looking. These forward-looking statements are based on current expectations

and beliefs concerning future developments and their potential effects. There can be no assurance that future developments affecting ARCA,

Oruka, including the pre-closing private financing, or the Merger will be those that have been anticipated.

The forward-looking statements contained in

this communication are based on current expectations and beliefs concerning future developments and their potential effects and therefore

subject to other risks and uncertainties. These risks and uncertainties include, but are not limited to, risks associated with the possible

failure to satisfy the conditions to the closing or consummation of the Merger risks associated with the potential failure to complete

the financing transaction in a timely manner or at all, risks associated with the uncertainty as to the timing of the consummation of

the Merger and the ability of each of ARCA and Oruka to consummate the transactions contemplated by the Merger, risks associated with

ARCA's continued listing on Nasdaq until closing of the Merger, the failure or delay in obtaining required approvals from any governmental

or quasi-governmental entity necessary to consummate the Merger; the occurrence of any event, change or other circumstance or condition

that could give rise to the termination of the Merger prior to the closing or consummation of the Merger, risks associated with the possible

failure to realize certain anticipated benefits of the Merger, including with respect to future financial and operating results; the effect

of the completion of the Merger on the combined company's business relationships, operating results and business generally; risks

associated with the combined company's ability to manage expenses and unanticipated spending and costs that could reduce the combined

company's cash resources; risks related to the combined company's ability to correctly estimate its operating expenses and

other events; changes in capital resource requirements; risks related to the inability of the combined company to obtain sufficient additional

capital to continue to advance its product candidates or its preclinical programs; the outcome of any legal proceedings that may be instituted

against the combined company or any of its directors or officers related to the Merger Agreement or the transactions contemplated thereby;

the ability of the combined company to obtain, maintain and protect its intellectual property rights, in particular those related to its

product candidates; the combined company's ability to advance the development of its product candidates or preclinical activities

under the timelines it anticipates in planned and future clinical trials; the combined company's ability to replicate in later clinical

trials positive results found in preclinical studies and early-stage clinical trials of its product candidates; the combined company's

ability to realize the anticipated benefits of its research and development programs, strategic partnerships, licensing programs or other

collaborations; regulatory requirements or developments and the combined company's ability to obtain necessary approvals from the

U.S. Food and Drug Administration or other regulatory authorities; changes to clinical trial designs and regulatory pathways; competitive

responses to the Merger and changes in expected or existing competition; unexpected costs, charges or expenses resulting from the Merger;

potential adverse reactions or changes to business relationships resulting from the completion of the Merger; legislative, regulatory,

political and economic developments; and those risks and uncertainties and other factors more fully described in filings with the Securities

and Exchange Commission ("SEC"), including reports filed on Form 10-K, 10-Q and 8-K, in other filings

that ARCA makes and will make with the SEC in connection with the proposed Merger, including the Proxy Statement/Prospectus described

below under "Important Additional Information About the Proposed Transaction Filed with the SEC," and in other filings

made by ARCA with the SEC from time to time and available at www.sec.gov. These forward-looking statements are based on current expectations,

and with regard to the proposed transaction, are based on ARCA's current expectations, estimates and projections about the expected

date of closing of the proposed transaction and the potential benefits thereof, its business and industry, management's beliefs

and certain assumptions made by ARCA, all of which are subject to change. Such forward-looking statements are made as of the date of this

release, and the parties undertake no obligation to update such statements to reflect subsequent events or circumstances, except as otherwise

required by securities and other applicable law.

No Offer or Solicitation

This communication is not intended to and

do not constitute (i) a solicitation of a proxy, consent or approval with respect to any securities or in respect of the proposed

transactions (the "Proposed Transactions") between ARCA and Oruka or (ii) an offer to sell or the solicitation of an

offer to subscribe for or buy or an invitation to purchase or subscribe for any securities pursuant to the Proposed Transactions or otherwise,

nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities

shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, or an exemption therefrom.

Subject to certain exceptions to be approved by the relevant regulators or certain facts to be ascertained, the public offer will not

be made directly or indirectly, in or into any jurisdiction where to do so would constitute a violation of the laws of such jurisdiction,