Mr. Thomas Smeenk reports

HEMOSTEMIX ANNOUNCES THE APPOINTMENT OF DR. RONNIE HERSHMAN TO THE BOARD OF DIRECTORS AND PROVIDES A CORPORATE UPDATE

Hemostemix Inc. has appointed Dr. Ronnie Hershman, doctor of medicine, Fundamentals of Critical Care Support, to its board of directors. Dr. Hershman is a successful, practicing cardiologist with over three decades of experience. Dr. Hershman graduated magna cum laude from the Sophie Davis Center for Biomedical Research in 1980 and received his medical degree from Mount Sinai Medical Center in 1982. He then continued his medical and cardiovascular training at Mount Sinai Medical Center.

Dr. Hershman has been an invasive cardiologist since 1987 and was involved in many clinical trials for emerging catheter technologies. He was a pioneer in performing laser-assisted coronary angioplasty, starting in private practice on Long Island in 1989. Presently the medical director of NYU Langone Long Island Cardiac Care, he built and manages a large medical practice, employing cutting-edge technology and continues his practice for patients with cardiovascular and peripheral vascular diseases, employing a non-invasive therapy for patients with intractable angina and congestive heart failure.

Dr. Hershman has also been an entrepreneur and investor for more than two decades. He has been involved in life science investing and consulting for several years and previously or currently serves on the boards of medical biotechnology companies Solubest Ltd., TheraVitae Inc., Nasus Pharma, SanoNash and Optivasive. He also serves as an adviser to a late-stage, life science venture capital company that has financed 24 companies to date. Dr. Hershman is now an investor in OurCrowd Ltd., a leading crowd financing company and is the co-founder and chief executive officer of HealthEffect LLC and CLiHealth LLC, SoLoyal, and Nasus Pharma, along with SanoNash.

Dr. Hershman continues to evaluate new medical technologies in the United States and Israel. His main interests lie in bringing improved medical technologies from the bench to the clinic, quickly and globally. He is actively seeking to commercialize technologies that improve lives and cure illnesses in the most effective and cost-efficient manner.

"Stem Cell therapies are the future in so many chronic illnesses and Hemostemix is an exciting company with a lot of promise in providing solutions and therapeutic options for many patients with critical cardiovascular illnesses and ischemia," commented Dr. Hershman. "As an investor and board member, I hope to assist in advancing these therapies further and create optimal value for patients and shareholders alike," he said.

Dr. Hershman is replacing Yari Nieken and Bryson Goodwin, who both resigned from their positions with the company, effective Feb. 10, 2020. Natasha Sever has also resigned from the position of chief financial officer. The company will look for suitable replacements for both chief executive officer and chief financial officer positions and Thomas Smeenk, president, will act as the interim chief executive officer until a replacement is hired. The company thanks Mr. Goodwin, Mr. Nieken and Ms. Sever for their service and wishes them well in their future endeavours.

"It is a great pleasure to welcome Dr. Hershman to the board of directors as he complements us with his broad medical experience, biotechnology and business investment acumen and counsel," said David Wood, chairman.

"I am honoured and delighted to welcome Dr. Hershman to the board of directors and I very much look forward to his counsel," said Mr. Smeenk.

The company also announces that, on Jan. 9, 2020, J.M. Wood Investment Inc. sent the company a notice of default and demand for the immediate repayment of the company's previously announced convertible debenture and demand loan. Based on the repayment conditions of the debts, the company took the position that the Jan. 9 notice was premature. On Jan. 24, JMWI made an application to the Court of Queen's Bench of Alberta for the issuance of an order appointing a receiver. The company responded with a 347-page affidavit, including appendices, sworn on Jan. 30, by Mr. Wood. The application was heard on Jan. 31 by Madame Justice Horner, who granted a consent order to adjourn the JMWI receivership application to Feb. 20, 2020, to enable the company to close its financing; granted an order appointing Grant Thornton as inspector; granted an order that the costs of the application of Jan. 31 would only be payable by the company if the application proceeds on Feb. 20. On Feb 6, 2020, cross-examinations on the affidavits of Mr. Wood and JMWI were heard.

Also, on Feb. 3, 2020, the company received an action from Aspire Health Science LLC filed with the Ninth Judicial Circuit Court for Orange county, Florida, in connection with the amended and restated licence agreement rescinded by Hemostemix on Dec. 5, 2019, due to Aspire's failure to meet the condition precedent of paying $1-million (U.S.) within 30 business days of Sept. 30, 2019. The company believes the action is frivolous, without merit, and it intends to vigorously defend its position.

The company intends to effect repayment of the secured debts and it will provide a further update to the market at that time. Although the company is optimistic that it will be successful in raising sufficient funds to meet its obligations, there can be no assurance that the financing will close as anticipated or within the time frames required.

About Hemostemix Inc.

Hemostemix is a publicly traded autologous stem cell therapy company, founded in 2003. 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.

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