Hemostemix Issues Letter to Shareholders Urging Them to Vote Their WHITE Proxy - Seite 3

The KEY to realizing this success and to unlock the VALUE is to stay the course.

THE DISSIDENTS' AGENDA WILL PUT YOUR INVESTMENT AT RISK

The Dissidents want to hijack your company and use its intellectual property for their purposes. They will derail Hemostemix off our path to success and focus instead on the grey market business of medical tourism in unregulated jurisdictions. It is short-sighted, alarming and destructive.

ACCORDING TO THE DISSIDENTS' PLAN, ALL HEMOSTEMIX ASSETS WILL BE USED AS COLLATERAL TO SECURE THEIR LOAN AND THEY WILL DECIDE IF HEMOSTEMIX GOES INTO DEFAULT AFTER AN INTIAL PAYMENT OF C$ 1 MILLION. IN ESSENCE, THE DISSIDENTS COULD SEIZE ALL HEMOSTEMIX ASSETS FOR C$ 1 MILLION.

Their agenda is to move our current program and clinical trials to Taiwan for premature commercialization. To give up the North American and European markets is foolish. To send your company to Taiwan is negligent.

The Dissidents have NO experience in developing drugs or medical devices - they do not have the knowledge, understanding or the skills needed to take this technology to the next level. What they do have is a track record of orchestrating hostile takeovers. Their involvement will undermine our strategic discussions with pharma and biotech partners and its future.

Shareholders will not benefit by abandoning our successful work or by placing our technology into the hands of a self-interested few without any experience or any track record and no concept of how to move it forward will not result in value to shareholders.

The Dissidents cannot be trusted, look at their past:

• Jed Wood, member of the Dissidents and proposed director, controls Drive Capital. It is no coincidence that Drive Capital has been pushing the company to borrow money on onerous and off-market terms. Drive Capital appeared to be pursuing a "loan to own" scheme with the company which could have resulted in the loss of all of our intellectual property. We rejected Drive Capital's proposal. This time consuming and costly proxy battle is the next step in Mr. Wood's attempt to take control of the company.
• Mr. Jim Brown is listed as a member of the Dissidents, and is president and CEO of Hemostemix Asia ("HEMA"), which is not affiliated with Hemostemix Inc. Mr. Brown is directly responsible for the failed arrangements between Hemostemix and HEMA. HEMA and Mr. Brown have failed to carry out their obligations under that agreement. And do not appear to be dealing in good faith. As a result, we have advised Mr. Brown that we consider HEMA in default of its obligations and the contract is void. Mr. Brown has responded by threatening to sue the company - Brown is an adversary of the company and not a viable candidate to lead it.
• Mr. Robert Achtymichuk is a member of the Dissidents and a former Hemostemix' Vice President of Business Development. While the Dissidents are critical of Hemostemix' poor disclosure, corporate governance and unsuccessful attempts to raise funds, they should be pointing the finger at Mr. Achtymichuk, who was responsible for these initiatives. And, Mr. Achtymichuk is playing both sides: He continued to bill the company for his services while working with the Dissidents in the lead up to their ambush.

With NO plan, NO biotechnology experience and NO control premium offered to Hemostemix shareholders during this critical stage in the company's development, the Dissidents' proposed changes to the Board are NOT in the best interests of Hemostemix and its shareholders.