Mr. Thomas Smeenk reports

HEMOSTEMIX LICENSES CYTOIMMUNE'S BIOREACTOR TECHNOLOGIES

Hemostemix Inc. has made a strategic breakthrough that secures its leadership position in the global stem cell market. By securing an arm's-length perpetual, royalty-free global licence to CytoImmune's Bioreactor stem cell technologies, Hemostemix has established an economic and competitive advantage that enhances its ability to scale ACP-01, protect its autologous stem cell market and create a cost-effective allogenic stem cell expansion strategy.

Subject to the TSX Venture Exchange acceptance, Hemostemix will pay CytoImmune $5-million (20 million shares) for a perpetual, global, royalty-free licence.

Hemostemix's strategic advantages from CytoImmune's Bioreactor technologies licence

• Lowest cost of goods sold for allogenic products;
• Strategic fence around autologous stem cell production;
• Scalability and commercial-ability of ACP-01 behind the fence.

Lowest cost of goods sold (COGS) in the industry

One of the most significant benefits of integrating CytoImmune's Bioreactor technologies into Hemostemix's allogenic stem cell manufacturing processes is the dramatic reduction in the cost of goods sold. Traditional stem cell expansion methods are expensive, labour-intensive and often reliant on inefficient batch-of-one processing. The key advantages of bioreactor technology include:

• Automated cell expansion: Continuous and scalable production reduces manual labour and batch-to-batch variability, ensuring consistent, high-quality stem cell output.
• High yield and efficiency: The bioreactor platform maximizes cell proliferation rates, producing exponentially more therapeutic doses per donor-derived stem cell input.
• Reduced facility and labour costs: The efficiency of automated bioreactor systems minimizes the need for extensive cleanroom environments and skilled labour, leading to significant cost reductions.
• Economies of scale: Mass production becomes feasible at a fraction of the cost of traditional autologous methods.

Building an allogenic stem cell fence around Hemostemix's autologous market

By leveraging CytoImmune's Bioreactor technologies, Hemostemix secures an allogenic supply of stem cells that strategically complements its autologous offering. This creates a "stem cell fence" -- a protective market barrier that prevents competitors from encroaching on Hemostemix's territory.

Here's how:

• Market domination through vertical integration: With the ability to mass-produce allogenic stem cells at the lowest COGS, Hemostemix can selectively supply stem cell therapies while ensuring its proprietary ACP-01 remains the gold standard for personalized regenerative medicine.
• Regulatory and competitive barriers: Owning a perpetual, royalty-free global licence ensures no external entity can impose licensing fees, limiting competitors' ability to scale at similar cost efficiencies.
• Dual market penetration: Hemostemix retains leadership in autologous treatments while developing allogenic applications to serve broader patient populations and licensing partners.

Scalability and commercial growth behind the fence

With its allogenic stem cell fence in place, Hemostemix is poised to:

1. Expand its clinical trials: With low-cost production scalability, Hemostemix can increase the number of indications treated and studied. The company will announce shortly its clinical trials update.
2. Accelerate regulatory approvals: Efficient manufacturing supports larger-scale clinical trials, while reducing time-to-market for new applications.
3. Pursue strategic partnerships and licensing: Hemostemix gains leverage to negotiate licensing and supply agreements from a position of strength, globally.
4. Increase profitability: Lower COGS translates into higher gross margins and improved financial sustainability.

CytoImmune's leadership

CytoImmune Therapeutics boasts a team of pioneers in bioreactor design, with extensive experience in applying computational fluid dynamics for optimizing reactor applications ranging from peptides to immune cells, scaling from pilot runs to industrial capacities of up to 20,000 litres. CytoImmune achieved a significant milestone with the first confirmed stirred tank bioreactor design and process for allogeneic T-cell production. Additionally, CytoImmune is at the forefront of integrating AI's (artificial intelligence) deep machine learning into bioreactor control systems, enhancing production efficiency for its cells. This combination of expertise in bioreactor technology and AI integration positions CytoImmune as a leader in the biotechnology sector.

Conclusion: a defensible, scalable future for Hemostemix

By securing a perpetual, royalty-free global licence to CytoImmune's bioreactor stem cell technologies, Hemostemix has positioned itself as the lowest-cost producer of scalable autologous and allogenic stem cell therapies. This move ensures a defensible, scalable business model that maximizes shareholder value while advancing the promise of regenerative medicine.

"We invite investors to recognize the long-term impact of this milestone as we continue to expand Hemostemix's leadership in the global stem cell market," said Thomas Smeenk, chief executive officer.

About Hemostemix Inc.

Hemostemix is an autologous stem cell therapy company, founded in 2003. A winner of the World Economic Forum Technology Pioneer Award, the company has developed, patented and is scaling a patient's blood-based stem cell therapeutics platform that includes angiogenic cell precursors, neuronal cell precursor and cardiomyocyte cell precursors.

We seek Safe Harbor.