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

CALGARY, Alberta, Feb. 28, 2020 (GLOBE NEWSWIRE) -- Hemostemix Inc. (“Hemostemix” or the “Company”) (TSXV: HEM; OTC: HMTXF) announces the Court of Queen’s Bench of Alberta (the “Court”) issued an order dated February 28, 2020 (the “Order”) dismissing J.M. Wood Investments Ltd.’s (“JM Wood”) application for the appointment of a receiver upon the payment of funds to satisfy the secured indebtedness owed to JM Wood.  Pursuant to the Order, the Company must pay into trust with counsel for JM Wood, or to such other person as otherwise agreed by the parties, by not later than March 9, 2020, the aggregate amount of $2,233,118.30 together with additional interest and recoverable costs claimed by JM Wood accrued from February 20, 2020 through the date on which such payment into trust is received (the “Secured Amount”). Upon the payment in accordance with the Order, the security granted to JM Wood by the Company pursuant to each of the Debenture GSA and the Loan Agreement GSA and any other security granted to JM Wood by the Company in relation to the Loan Agreement or the Debenture shall be discharged and released and shall be of no further force or effect.

Private Placement Update

The Company is also pleased to announce it has received TSX Venture Exchange Inc. (the “Exchange”) conditional approval for the non-brokered private placement of up to 300,000,000 units at $0.01 per unit for gross proceeds of up to $3,000,000 (the “Financing”) announced in its press release dated January 2, 2020 and further disclosed in press releases dated February 25, 2020 and February 27, 2020.  Closing is subject to receiving final Exchange approval.

The Financing will close in tranches and the Company intends to close a first tranche of the Financing on or before March 9, 2020. A further news release with closing figures will be issued upon closing the first tranche. The net proceeds of the first closing will be used to repay the Secured Amount, legal expenses ($30,000), audit expense ($30,000), costs for a statistician to perform an interim clinical trial analysis and report ($50,000), pay certain accounts payable ($50,000) and the balance for unallocated working capital.  The Secured Amount is higher than disclosed in the Company’s news release dated February 27, 2020 due to interest accruals and costs awarded to JM Wood under the Order.

“We are extremely pleased with the Order dismissing the receivership application upon payout of the Secured Amount,” states Thomas Smeenk, President of the Company. “We would like to thank our entire team, as well as our dedicated shareholders and advisors for their continued support and with assisting the Company in raising the funds to repay the Secured Amount. With the anticipated closing of the first tranche of the Financing and repayment of Secured Amount, the Company will be in a much stronger position to move forward with its business objectives.” 

ABOUT HEMOSTEMIX

Hemostemix is a publicly traded autologous stem cell therapy company, founded in 2003. A 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 titled: 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 & Founder
Suite 1150, 707 – 7^th 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, 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.