Hemostemix closes $461,230 first tranche of financing

Executive Summary

• Hemostemix Inc. has closed the first tranche of its previously announced non-brokered private placement, raising $461,230 in gross proceeds.
• The company issued 4,193,000 units at a price of 11 cents per unit, with each unit comprising one common share and one common share purchase warrant.
• Net proceeds are designated for general working capital and to support the marketing and sales of the company's proprietary stem cell therapy, VesCell.

Key Details

• Gross Proceeds: $461,230
• Units Issued: 4,193,000 units
• Price Per Unit: $0.11 CAD
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms:
  • Each full warrant entitles the holder to acquire one additional common share.
  • Exercise Price: $0.15 per share.
  • Expiry: Two years from the closing date.
  • Accelerated Expiry Provision: If the closing sales price (or closing bid) of common shares on the TSX Venture Exchange exceeds a weighted average price of $0.185 per share for 10 consecutive trading days (occurring after four months and one day post-closing), the company may accelerate the warrant expiry to 30 days following a news release notice.
• Finder’s Fees:
  • Cash Fees: Approximately $23,698.40 paid to eligible finders.
  • Options Issued: 215,440 finders' options.
  • Option Terms: Each option entitles the holder to purchase one common share at an exercise price of $0.15 per share for a period of 24 months from the closing date.
• Use of Proceeds: General working capital and support for continuing operations, specifically including the marketing and sales of VesCell (ACP-01).
• Related Party Transaction: Certain directors participated directly and indirectly in the offering. The company relied on exemptions from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101 (MI 61-101), as the fair market value of the interested party's involvement did not exceed 25% of the company's market capitalization.
• Regulatory Status: Subject to necessary regulatory approvals, including acceptance from the TSX Venture Exchange.
• Hold Period: All securities issued are subject to a four-month hold period from the closing date under applicable Canadian securities laws.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.