Hemostemix Inc.
TSX VENTURE : HEM

Hemostemix Inc.

July 21, 2017 19:53 ET

Hemostemix Announces Updates on Rights Offering and Private Placement

BLACKFALDS, ALBERTA--(Marketwired - July 21, 2017) -

NOT FOR DISSEMINATION TO U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Hemostemix Inc. ("Hemostemix" or the "Company") (TSX VENTURE:HEM) is pleased to announce that today it mailed and filed the definitive materials related to its rights offering pursuant to the prospectus exemption set forth in Section 2.1 of National Instrument 45-106 - Prospectus Exemptions (the "Rights Offering"). Details of the Rights Offering are described in the Company's rights offering circular dated July 17, 2017 (the "Circular"), a copy of which may be obtained under the Corporation's profile on SEDAR at www.sedar.com and which has been filed with the securities regulators in all of the provinces and territories of Canada (the "Qualified Jurisdictions").

Pursuant to the Rights Offering, each holder (a "Shareholder") of outstanding common shares ("Common Shares") of record at the close of business (5:00 p.m. Eastern Daylight Time, or 3:00 p.m. Calgary time) on July 18, 2017 (the "Record Date") who is resident in Qualified Jurisdictions will receive one transferable right (each, a "Right") for every one and one-half (1.5) Common Shares held on the Record Date. Rights will entitle the holder thereof to acquire, at the election of the holder and on the basis described in the Circular, subscription receipts ("Subscription Receipts") upon the exercise of the Rights. Hemostemix is offering a total of 49,722,079 Rights to Shareholders. The news release of the Corporation dated July 11, 2017 relating to the Rights Offering referred to 49,722,119 Rights to Shareholders, which was incorrect. The period to exercise the Rights expires at 5:00 p.m. (Eastern Daylight Time, or 3:00 p.m. Calgary time) (the "Expiry Time") on August 11, 2017 (the "Expiry Date"). The news release of the Corporation dated July 11, 2017 relating to the Offering referred to August 8, 2017, which has been adjusted.

Hemostemix also provided certain updates in relation to its related private placement offering (the "Private Placement Offering"). In particular, the Company confirmed that in consultation with PI Financial Corp. ("PI" or the "Agent"), the exclusive agent and sole bookrunner and exclusive soliciting dealer for and on behalf of the Company, to expand the jurisdictions to conduct the Private Placement Offering to include Saskatchewan, (in addition to British Columbia, Alberta and Ontario) and in those jurisdictions to rely on, amongst other exemptions, the prospectus exemptions for retail investors and existing security holders, where applicable. In accordance with the various local rules, orders and instruments enabling those exemptions in the jurisdictions, where applicable (the retail investor exemption being available in British Columbia, Alberta and Saskatchewan and the existing security holder exemption being available in those jurisdictions as well as Ontario), the Company wishes to confirm the details included in in its July 11, 2017 news release describing the details of the Private Placement Offering, including, without limitation, (i) the minimum and maximum number of Subscription Receipts proposed to be distributed and the minimum and maximum aggregate gross proceeds of the Private Placement Offering, and (ii) the proposed principal uses of the gross proceeds of the Private Placement Offering. In addition, the Company confirms that under the Private Placement Offering it may, subject only to applicable securities legislation, accept or reject subscriptions, in whole or in part, for any reason, including any allocation of Subscription Receipts if aggregate subscriptions exceed the maximum number of Subscription Receipts proposed to be distributed. Further, the Company confirms there is no material fact or material change related to it which has not been generally disclosed. Additional details relating to the Private Placement Offering including the uses of the gross proceeds of the Private Placement Offering are described in the Circular.

ABOUT HEMOSTEMIX INC.

Hemostemix is a public clinical-stage biotechnology company that develops and commercializes innovative blood-derived cell therapies for medical conditions not adequately addressed by current treatments. It is the first clinical-stage biotech company to test a stem-cell therapy in an international, multicenter, phase 2 clinical trial for patients with critical limb ischemia (CLI), a severe form of peripheral artery disease (PAD) caused by reduced blood flow to the legs. The phase 2 trial targets a participant's diseased tissue with proprietary cells grown from his or her blood that can support the formation of new blood vessels.

Hemostemix Inc. is traded on the TSX Venture Exchange under the trading symbol HEM. To find out more visit hemostemix.com or email office@hemostemix.com.

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.

The securities offered pursuant to the Rights Offering have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

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 stage of development, long-term capital requirements and future ability to fund operations, 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.

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