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  • Hemostemix (HEM) has closed its $2,500,000 convertible debenture order from a company director for debenture units priced at $1,000 per unit
  • The debenture offering ‎is a $2,500,000 five-year unsecured non-transferrable convertible debenture
  • Each debenture unit consists of a $1,000 principal amount debenture and 2,500 debenture warrants
  • Each debenture warrant entitles the holder to acquire one share at a price of $0.55 for a ‎period of 24 months
  • Hemostemix is a publicly-traded autologous stem cell therapy company
  • Hemostemix Inc. (HEM) opened trading at C$0.255 per share

Hemostemix (HEM) has closed its $2,500,000 convertible debenture order from a company director for debenture units priced at $1,000 per unit.

The debenture offering ‎is a $2,500,000 five-year unsecured non-transferrable convertible debenture consisting of 2,500 debenture units at a price of $1,000 per unit.

Each debenture unit consists of a $1,000 principal amount debenture and 2,500 debenture warrants. The ‎debentures mature five years from the closing date and bear interest of 6% per annum, payable in cash or common shares at the option of the company. The ‎principal amount of the debentures may only be converted into common shares at a price of $0.40 per share at the company's discretion. Any accrued and unpaid interest may also be converted into ‎common shares at a conversion price equal to the market price.‎

Each debenture warrant entitles the holder to acquire one share at a price of $0.55 for a ‎period of 24 months from the closing of the debenture offering.‎

The net proceeds of the debenture offering will be used to fund the litigation expenses of HEM. The $2.5MM will be used as follows: up to $0.6MM will be immediately available to HEM as reimbursement for past litigation expenses; and until required for litigation expenses, USD $1.5MM will be invested in a demand loan  ‎to an arm's length US company. The balance of the debenture offering will be available for past or potential future litigation expenses.

The debenture units and any common shares resulting from the conversion of the debentures or the exercise of debenture warrants will be subject to a hold period until October 11, 2021.

Clinical trial update

Hemostemix has obtained a new copy of its clinical trial database from a former service provider who originally activated the clinical trial. The company's data management firm is now integrating the data of the subjects treated in South Africa. Hemostemix's contractors are proceeding with the completion of key tasks of the closeout of the clinical trial including completion of the database management plan, drafting of the statistical analysis plan, completing database entry, query management and database validation.

Litigation update

In the action pending in Florida State Court, Hemostemix and Aspire are engaging in discovery, including issuing notices for the depositions of key employees and officers. Dates for the depositions are being negotiated. Hemostemix intends to depose Aspire's witnesses in July 2021 after the parties have exchanged documents. Hemostemix continues to aggressively defend itself against Aspire's claims, which are without merit.

In the action pending in Delaware Federal Court, on June 1st Hemostemix, the plaintiff moved to dismiss Aspire's counterclaims. The parties are to begin discovery, including document collection and production and are negotiating a confidentiality agreement to govern the exchange of documents by each party. Hemostemix will continue to aggressively prosecute its claims against Accudata and Aspire.

Hemostemix is a publicly-traded autologous stem cell therapy company. The company 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 500 patients who have exhausted all other options to save their limbs from amputation.

Hemostemix Inc. (HEM) opened trading at C$0.255 per share.

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