Hemostemix receives $330,000 lead order for private placement

Hemostemix Inc. (TSXV: HEM) (OTCQB: HMTXF) (FSE: 2VF0) announced it received a lead order of $330,000 for a non-brokered private placement of up to $700,000, according to a company statement.

The Calgary-based stem cell therapy company said purchasers may subscribe for units at $0.11 each. Each unit consists of one common share and one warrant that allows the holder to acquire one common share at $0.15 for two years from the closing date.

The warrants include an acceleration provision. If the closing sales price of common shares exceeds a weighted average price of $0.185 per share for 10 consecutive trading days after four months from closing, the company may accelerate the warrant expiry date to 30 days following a press release notice.

A company director is participating in the offering, which constitutes a related party transaction under Multilateral Instrument 61-101. Hemostemix said it is relying on exemptions from formal valuation and minority shareholder approval requirements because the company is not listed on a specified stock exchange and the transaction value does not exceed 25% of the company's market capitalization.

The company stated proceeds will be allocated to general working capital for continuing operational expenses, including marketing and sales of its VesCell therapy.

Hemostemix develops autologous blood-based stem cell therapy called VesCell (ACP-01). The company said it has completed seven clinical studies involving 318 subjects and published results in peer-reviewed publications. The therapy has been tested for conditions including peripheral arterial disease, chronic limb threatening ischemia, and various forms of cardiomyopathy.

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