Mr. Thomas Smeenk reports
HEMOSTEMIX ANNOUNCES PRIVATE PLACEMENT AND DEBT SETTLEMENT
Hemostemix Inc. will raise up to $650,000 by way of a non-brokered private placement of units and settle trade payables of up to $424,924.35 with shares valued at one cent per common share.
Each unit of the offering comprises one common share of the company and one share purchase warrant. Each warrant will entitle the holder to acquire one additional share in the capital of the company at a price of five cents per warrant for a period of one year from the date the units are issued. If, on any 10 consecutive trading days occurring after four months and one day following the closing date of the offering, the closing sales price of the shares (or the closing bid, if no sales were reported on a trading day) as quoted on the TSX Venture Exchange is greater than seven cents per share, the company may provide notice in writing to the holders of the warrants, by issuance of a press release, that the expiry date of the warrants will be accelerated to the 30th day following the date of such press release.
The pricing of the offering and debt settlement are based on the temporary relief measures established by the TSX-V on April 8, 2020, and extended on Sept. 16, 2020, in response to the COVID-19 pandemic. The TSX-V published the temporary relief measures to Policy 4.1 and Policy 4.3, lowering the minimum pricing from five cents to one cent per share for shares issued pursuant to a private placement or debt settlement when the market price of an issuer's shares is not greater than five cents.
Proceeds from the offering are expected to pay finder fees payable in connection with the closing ($52,000), clinical trial sites accounts payable, legal fees and provide for general working capital. The offering will be completed pursuant to certain exemptions from prospectus requirements under applicable securities laws. The offering may be closed in one or more tranches. There is no minimum subscription amount. The company may pay finders' fees to eligible finders of up to 8 per cent cash and 8 per cent finder warrants. Each finder's warrant may be exercised to acquire a unit of the offering on the same terms as the offering, but only following the rollback of the company's shares. The financings are subject to final approval of the TSX-V. All securities are subject to a statutory hold period of four months from the date of closing.
Hemostemix is a publicly traded autologous stem cell therapy company. A winner of the World Economic Forum Technology Pioneer Award, the company developed and is commercializing its lead product, ACP-01, for the treatment of CLI, PAD, angina, ischemic cardiomyopathy, dilated cardiomyopathy and other heart
conditions.. ACP-01 has been used to treat over 300 patients and it is the subject of a randomized, placebo-controlled, double-blind trial of its safety and efficacy in patients with advanced critical limb ischemia who have exhausted all other options to save their limb from amputation.
On Oct. 21, 2019, the company announced the results from its phase II CLI trial abstract, which noted healing of ulcers and resolution of ischemic rest pain occurred in 83 per cent of patients, with outcomes maintained for up to 4.5 years.
The company owns 91 patents across five patent families.
We seek Safe Harbor.
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