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by Stockwatch Business Reporter

The TSX Venture Exchange fell 15.60 points to 755.45 Thursday. David Wood and Colleen Flynn's capital pool shell, Technical Ventures RX Corp., completed its qualifying transaction yesterday by rolling back 1:5 and launching Bill Baker's research and development pharmaceutical company, Hemostemix Inc. (HEM). It started trading today, closing at 55 cents on 168,000 shares. The company hopes to use adult stem cell therapies to treat severe medical disorders.

The shell rolled back its shares 1:5 and then issued 57,002,119 postconsolidated shares to shareholders of its QT target, Theravitae Inc., after which Technical changed its name to Hemostemix. The company recently started a phase 2 clinical trial in Canada of its product, ACP-01, for the treatment of critical limb ischemia, a disease of the arteries. It expects to complete the trial within two years at a cost of about $6-million. This is an expensive business but Mr. Baker has done a fine job of raising money to keep Hemostemix alive. The company has spent more than $15-million to date and it raised $3.5-million in connection with the QT, selling four million shares at 50 cents through a short form offering and three million shares at 50 cents through a private placement. The financings were handled by Wolverton Securities Inc. with help from Haywood Securities Inc. If the phase 2 clinical trial is successful, the company will then need to conduct a phase 3 clinical trial, which would take up to three more years and cost about $20-million. The company notes that about 30 per cent of products in phase 2 clinical trials successfully make it to the market, although it is unclear what percentage of the stem cell trials successfully make it to the market.

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