Hemostemix Announces Corporate Update

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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.