Hemostemix Announces Closing of Private Placement

Calgary, Alberta--(Newsfile Corp. - May 7, 2020) - Hemostemix Inc. (TSXV: HEM) (OTC: HMTXF)  ("Hemostemix" or the "Company") announces it has closed its previously announced non-brokered private placement of units ("Units") for gross proceeds of $1,291,500 (the "Offering"). The Offering consisted of the issuance of an aggregate of 129,150,000 Units at a price of $0.01 per Unit. Each Unit consists of one common share in the capital of the Company ("Common Share") and one common share purchase warrant ("Warrant"), with each full Warrant entitling the holder to acquire one Common Share at a price of $0.05 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 has 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 Inc. ("Exchange") is greater than $0.07 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.

In connection with the Offering, the Company paid eligible finders aggregate cash finders fees of approximately $35,680 and issued an aggregate of 3,568,000 finder warrants. Each finders warrant is exercisable for a period of 12 months from the closing date to acquire Units at a price of $0.01 per Unit.

Proceeds from the Offering are expected to be used to pay finder fees payable in connection with the closing of the Offering ($35,680), for the build-out of the management team including the hiring of the Chief Scientific Officer and Chief Medical Officer (up to $500,000), public company sustaining costs and general working capital ($350,820), ACP-01 technology transfer ($175,000), automation buildout ($150,000), and patent sustaining fees and expenses ($80,000).

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.

For further details regarding closing of the Company's Offering, please refer to the Company's News Releases dated April 20, 2020 and April 29, 2020. In connection with the Offering, the Company relied in part on the existing shareholder and investment advisor exemption and the record was April 20, 2020.  The Company is not aware of any material changes that have not been previously disclosed

ABOUT HEMOSTEMIX

Hemostemix is a publicly traded autologous stem cell therapy company and 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 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 October 21, 2019, the Company announced the results from its Phase II 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 Followup" which noted healing of ulcers and resolution of ischemic rest pain occurred in 83% of patients, with outcomes maintained for up to 4.5 years.

The Company owns 91 patents across five patent families including Regulating Stem Cells, In Vitro Techniques for use with Stem Cells, Production from Blood of Cells of Neural Lineage, and Automated Cell Therapy. For more information, please visit www.hemostemix.com.

Contact: Thomas Smeenk, President, CEO & Co-Founder
Suite 1150, 707 - 7th Avenue S.W., Calgary, Alberta T2P 3H6, 905-580-4170

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined under the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential," and similar expressions, or that events or conditions "will," "would," "may," "could," or "should" occur. Although Hemostemix believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates, and opinions of Hemostemix management on the date such statements were made. By their nature forward-looking statements are subject to known and unknown risks, uncertainties, and other factors which may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the Company's ability to fund operations and access the capital required to continue operations including closing additional tranches of the Offering, the Company's stage of development, the ability to complete its current CLI clinical trial, complete a interim clinical trial analysis and futility analysis and the results of such, future clinical trials and results, long-term capital requirements and future developments in the Company's markets and the markets in which it expects to compete, risks associated with its strategic alliances and the impact of entering new markets on the Company's operations. Each factor should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. Hemostemix expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. Additional information identifying risks and uncertainties are contained in the Company's filing with the Canadian securities regulators, which filings are available at www.sedar.com.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/55517

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