Hemostemix raises CDN$360,000 in first tranche of private placement

Hemostemix Inc. (TSXV: HEM) (OTCQB: HMTXF) has closed the first tranche of a non-brokered private placement, raising CDN$360,000 through the issuance of 7,200,000 units at CDN$0.05 per unit, according to a company statement.

Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant allows the holder to acquire one additional common share at CDN$0.12 for 24 months from the closing date. The company may accelerate warrant expiry to 30 days' notice if the volume-weighted average trading price on the TSX Venture Exchange reaches or exceeds CDN$0.15 for any 10 consecutive trading days after four months and one day from closing.

In connection with the first tranche, the company paid approximately CDN$12,400 in finder's fees and issued 248,000 finder warrants, each exercisable at CDN$0.06 per share for 24 months.

The company states proceeds will be directed toward sales, marketing, patient acquisition, physician education, and commercialization; production and manufacturing costs for ACP-01 treatments; regulatory fees related to submissions to the Bahamas Ministry of Health and Wellness; and general working capital.

Certain directors participated in the offering, constituting a related party transaction under Multilateral Instrument 61-101. The company is relying on exemptions from formal valuation and minority shareholder approval requirements, citing that the transaction value does not exceed 25% of the company's market capitalization.

The offering remains subject to final acceptance by the TSX Venture Exchange. All securities issued are subject to a statutory hold period of four months plus one day from the closing date under Canadian securities laws.

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