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by Stockwatch Business Reporter

The TSX Venture Exchange added 3.49 points to 988.69 Tuesday. David Wood and Colleen Flynn's halted capital pool shell, Technical Ventures RX Corp. (TIK), expects to close its acquisition of TheraVitae Inc. by the end of the month. The shell and its target will both ask shareholders at separate meetings on the same day, Sept. 26, to approve the qualifying transaction. The target has sold $4.69-million worth of private placements in connection with this deal.

Technical Ventures will roll back its shares 1:5 and then issue 57,002,119 postconsolidated shares to TheraVitae shareholders, after which the shell will change its name to Hemostemix Inc. The target is a research and development pharmaceutical company that hopes to use adult stem cell therapies to treat severe medical disorders. It has received approval from Health Canada to begin a phase 2 clinical study of its product, ACP-01, for the treatment of critical limb ischemia, a disease of the arteries. It plans to begin the clinical study in November, 2014, and complete it within 30 months. The company anticipates spending about $6-million in total on the trial (it will have about $4-million in working capital when the QT closes). If the phase 2 trial goes well, there will be a phase 3 trial, which will take up to three more years, before the company can have approval to sell its drug in most countries. It estimates the total cost of bringing ACP-01 to commercial production at between $20-million and $30-million, but the company also warns, "Generally speaking, only 30 per cent of products in phase 2 clinical trials successfully make it to the market." The company does not state what percentage of stem cell trials successfully make it to the market.

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