Hemostemix Inc.
TSX VENTURE : HEM
OTCQX : HMTXF

Hemostemix Inc.

September 01, 2016 08:30 ET

Hemostemix Inc. Reminds Shareholders to Vote the WHITE Proxy in Favour of the Current Trusted Board

TORONTO, ONTARIO--(Marketwired - Sept. 1, 2016) - Hemostemix Inc. ("Hemostemix" or the "Company") (TSX VENTURE:HEM)(OTCQX:HMTXF) thanks shareholders for their overwhelming support for their current experienced Board and reminds all shareholders to vote their WHITE proxy by 2:00 PM (MDT) on September 6, 2016.

A group of self-interested Dissidents are attempting to ambush shareholders and take over Hemostemix' Board. The Dissidents have NO experience in developing drugs or medical devices, nor the knowledge and understanding to take Hemostemix' technology to the next level. Their plan is to hijack the Company and use its intellectual property for their purposes. They will derail Hemostemix off its path to success and destroy shareholder value.

Hemostemix would like to set the record straight and correct the misleading statements made by the Dissidents:

  • Our priority is finishing our landmark international Phase 2 clinical trial. Importantly, the status of the trial is ongoing, we have secured all data, and data collection and patient follow-up are ongoing. We anticipate we can continue with the enrollment of new patients in September without compromising patient safety or data integrity. The termination of the Criterium contract is not impacting our ability to continue with the trial. We have been working on further broadening the geographic scope of the trial and enabling much faster enrollment in the future through rapid expansion of the number of trial sites.
  • Reaching the interim analysis is the key to unlocking the value of Hemostemix. This is key to increasing the stock price and to opening up discussions with influential partners in biotech and pharma. We are already about halfway through to the interim analysis. With funding, we expect it will take approximately nine months to have the unblended data in hand. We anticipate we need C$4MM to reach this extremely important milestone.
  • The financing proposed by Drive Capital was NOT an option. The terms were egregious and dangerous and it was presented as an ultimatum. It was an attempt to take over the Company's intellectual property.
  • Jed Wood, one of the Dissident nominees is a director of Drive Capital, this is a second attempt to take over the Company masked by a proxy fight.
  • The Dissidents themselves have tried to distract us and lead the Company's efforts off track. Some of them even were working against us while they still held trusted roles as employees or board members. But we have moved past them and our strengthened board and knowledgeable management team are focused and ready to lead this Company to success.

If shareholders have further questions regarding statements made by the Dissident group we encourage you to call Kingsdale Shareholder Services at 1-888-518-6832 to get the facts.

The TRUE facts:

  1. Hemostemix has made great strides bringing landmark technology to market and is clearly on the path to success and the much valued interim analysis milestone.
  2. Hemostemix has strengthened its best-in-class Board, creating a strong balance between deep industry knowledge, international operating experience and capital markets expertise.
  3. Hemostemix' current team has a clear plan designed to accelerate enrollment in a way that will minimize cost and hasten the Company to clinical data.
  4. The Dissident nominees will put your investment in Hemostemix at risk. They have NO industry experience. Their self-interested agenda will unwind the progress the Company has achieved.
  5. We will create value for all shareholders by staying the course and developing our technology in safe environments with significant addressable markets.

"Hemostemix' strengthened Board and experienced management team have a clear strategy that will lead to the creation of shareholder value. Our focus is on executing and implementing that plan to the benefit of all shareholders," said Angus Jenkins, Chairman of Hemostemix' Board of Directors. "We encourage all shareholders to vote their WHITE proxy to support Hemostemix' Board and ensure the progress we have achieved in bringing our landmark technology to market is not lost."

We cannot allow self-interested dissidents with NO experience to get onto the Board and derail the Company. Regardless of how many shares you own or whether you plan to attend the upcoming meeting on September 8, 2016 or not, it is imperative that you vote your WHITE proxy FOR management's nominees.

You may vote your WHITE proxy by internet or telephone, or by signing, dating, and returning the enclosed WHITE proxy by fax to Kingsdale Shareholder Services at 1-866-545-5580 or 416-867-2271. Only your later-dated proxy will count.

Shareholders are urged to vote their WHITE proxy FOR Hemostemix' current Board of Directors prior to the proxy cut-off at 2:00 p.m. (MDT) on September 6, 2016.

You may revoke a blue proxy already given by completing and delivering your WHITE proxy. The later dated WHITE proxy revokes any and all prior proxies given by you in connection with the Meeting.

Shareholders with questions should contact Kingsdale Shareholder Services at 1-888-518-6832 toll-free in North America, or 416-867-2272 outside North America or by email at contactus@kingsdaleshareholder.com.

Hemostemix has engaged Norton Rose Fulbright Canada LLP as their legal advisor and Kingsdale Shareholder Services and their strategic advisor and proxy solicitation agent.

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.

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