Hemostemix Inc.
OTCQX : HMTXF
TSX VENTURE : HEM

Hemostemix Inc.

September 02, 2016 16:05 ET

Hemostemix Closes $1,644,000 Offering

TORONTO, ONTARIO--(Marketwired - Sept. 2, 2016) - Hemostemix Inc. ("Hemostemix" or the "Company") (TSX VENTURE:HEM) (OTCQX:HMTXF) today announces it has closed its private placement offering of secured debentures and promissory notes for aggregate gross proceeds of $1,644,000 (the "Offering"), representing an over-subscription of $34,000 from the amount originally disclosed in the Company's August 11, 2016 news release.

The Offering consisted of a $1-million convertible senior secured debenture ("Debenture") from an arm's-length party and $644,000 of unsecured convertible promissory notes ("Notes"), including $464,000 advanced from current insiders of the Company. The terms of the Notes were amended to include a conversion feature allowing the holder to convert the Notes into common shares at a conversion price of 16 cents per common share. The Notes bear no interest unless there is a change of control, in which case the interest rate becomes 10%, and is repayable with no penalty on or before the date which is 12 months from the date of issuance.

The Debenture has been secured by a general security agreement, bears no interest, matures three years from the date hereof, and is convertible into units of the Company at a conversion price of 16 cents per unit. Each unit consists of one common share and one-half common share purchase warrant, with each whole warrant entitling the holder to acquire one additional common share for 30 cents within 36 months from the date of issue. The Company may prepay the Debenture, in whole or in part, at any time without penalty. The Debenture also contains customary change of control provisions, including acceleration of the maturity date and increased interest rate to 10% in the event of a change of control.

The proceeds will be used to finance the Company's ongoing working capital requirements.

The Offering was conditionally approved by the TSX Venture Exchange on August 31, 2016 and final approval is expected shortly. The Debenture and the Notes are subject to a four month hold period expiring on January 3, 2017.

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 are capable of supporting the formation of new blood vessels. The Company recently received FDA clearance to commence clinical trials in the United States.

Hemostemix Inc. is traded on the TSX Venture Exchange under the trading symbol HEM and on the OTCQX® Best Market under the trading symbol HMTXF. For more information, visit hemostemix.com or email office@hemostemix.com.

Neither the TSX Venture Exchange Inc. 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. 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.

This press release, provided pursuant to applicable Canadian requirements and does not constitute an offer of the securities described herein. These securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or applicable exemption from registration requirements.

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