Mr. Thomas Smeenk reports
HEMOSTEMIX ANNOUNCES CLOSING OF PRIVATE PLACEMENT
Hemostemix Inc. has closed its non-brokered private placement of units for gross proceeds of $183,690,
as previously announced on Sept. 29, 2020. The offering consisted of the issuance of an aggregate of 18,369,000 units at a price of one cent per unit. Each unit consists of one common share in the capital of the company and one common share purchase warrant, with each full warrant entitling the holder to acquire one common share at a price of five cents per common share for a period of 12 months from the closing of the offering, subject to the accelerated expiry provision described below.
If, on any 10 consecutive trading days occurring after four months and one day have elapsed following the closing date of the offering, the closing sales price of the common 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 common 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 after the date on which the company issues such press release.
Net proceeds from the offering are expected to be used to pay filing and regulatory fees of $2,000, legal expenses of $7,900, clinical trial and litigation costs, and related accounts payable of $173,795.
In connection with the offering, the company has received final approval from the exchange. All securities issuable pursuant to the offering are subject to a four-month-and-one-day hold period from the date of issuance in accordance with applicable Canadian securities laws.
The participation of one director in the offering constitutes a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) and the policies of the TSX Venture Exchange. The company is relying upon the exemptions from the formal valuation and minority shareholder approval requirements pursuant to sections 5.5(b) and 5.7(1)(a), respectively, of MI 61-101 on the basis that the company is not listed on a specified stock exchange and, at the time the offering was agreed to, neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction insofar as it involves an interested party (within the meaning of MI 61-101) in the offering, exceeds 25 per cent of the company's market capitalization calculated in accordance with MI 61-101.
The company is not aware of any material changes that have not been previously disclosed.
About Hemostemix Inc.
Hemostemix is a publicly traded autologous stem cell therapy company, founded in 2003. 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 conditions of ischemia. ACP-01 has been used to treat over 300 patients, and it is currently 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 2 CLI trial abstract presentation entitled "Autologous Stem Cell Treatment for CLI Patients with No Revascularization Options: An Update of the Hemostemix ACP-01 Trial With
4.5 Year Follow-up," 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 clinical trial is continuing.
The company owns 91 patents across five patent families titled: regulating stem cells, in vitro techniques for use with stem cells, production from blood of cells of neural lineage and automated cell therapy.
We seek Safe Harbor.
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