Hemostemix Announces Engagement of Oak Hill Asset Management Inc.

Calgary, Alberta–(Newsfile Corp. – March 7, 2024) – Hemostemix Inc. (TSXV: HEM) (OTCQB: HMTXF) (FSE: 2VF0) (“Hemostemix” or the “Company”) is pleased to announce the non-exclusive engagement of Oak Hill Asset Management Inc. (“OHAM”), an Exempt Market Dealer to provide capital markets advice related to the Company’s capital markets strategy. Services include advice on the structure of equity or debt capital financing and the identification of potential future investors.

The Company intends to raise approximately C$6 million in low-dilution capital (the “Offering”). Proceeds will be used to re-establish production of ACP-01 for sale as an exempt compassionate treatment and to complete its phase III CLTI clinical trial.

Pursuant to an engagement letter between the Company and OHAM, the Company has agreed to pay OHAM a cash fee of $12,000 plus $20,000 in common shares as a work fee. Additional fees would be paid on any financing raised by OHAM.

Proceeds from the Offering will allow the Company to lease ready-to-occupy cGMP production capacity in Puerto Rico in 2024 and generate revenue by the end of 2025 through 30-40 exempt compassionate treatments per month, while scaling production and progressing its clinical trial. ​Sales of ACP for CLTI treatments will be through clinical trial sites (to patients who do not meet inclusion criteria), through limb salvage clinics and podiatrists. To-date, seven clinical trial sites have agreed to refer patients to Hemostemix for exempt compassionate treatments; and, have agreed to process up to 226 of Hemostemix’s referrals to them per month.

Puerto Rico’s Act 60 legislation enables the company to obtain 50% cash back on eligible expenses including clinical trials. Additionally, ACT 60 provides the company with a 15-year 1% profit tax structure, and a 20% tax credit for offshore expenses.​

The structure and price of the Offering has yet to be determined and the Company will issue a follow-up news release once details are available. The Company is confident that it can be completed on a low-dilutive basis that appropriately values the significant, near-term revenue and cash flow streams.

“The 498 treatments of ACP, including the seven clinical studies published in peer reviewed journals to-date, demonstrate ACP is safe and effective in the treatment of peripheral arterial disease and three forms of heart disease,” stated Thomas Smeenk, CEO. “It is remarkable that the clinical trial sites will be able to refer and see up to 226 no-option referrals. Compared to no-option and amputation, an ACP injection under exemption to save the limb makes sense,” Smeenk said.

ABOUT HEMOSTEMIX

Hemostemix is an autologous stem cell therapy company, founded in 2003. A winner of the World Economic Forum Technology Pioneer Award, the Company has developed, patented, and is scaling a patient’s blood-based stem cell therapeutics platform that includes angiogenic cell precursors, neuronal cell precursor and cardiomyocyte cell precursors. For more information, please visit www.hemostemix.com.

For further information, please contact: Thomas Smeenk, President, CEO & Co-Founder
EM: tsmeenk@hemostemix.com PH: 905-580-4170

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined under the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In particular, this news release contains forward-looking information in relation to: the engagement of Oak Hill Financial, the sales of ACP-01 as an exempt compassionate treatment, the licensing of ACP-01, the Trademark Know Your Health! and related results, including the commercialization of ACP-01. ‎‎There can be no assurance that such forward-looking information will prove to be accurate. Actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects Hemostemix’s current beliefs and is based on information currently available to Hemostemix and on assumptions Hemostemix believes are reasonable. These assumptions include, but are not limited to: the underlying value of Hemostemix and its Common Shares; the successful resolution of the litigation that Hemostemix is pursuing or defending (the “Litigation“); the results of ACP-01 research, trials, studies and analyses, including the analysis being equivalent to or better than previous research, trials or studies; the receipt of all required regulatory ‎approvals for research, trials or studies; the level of activity, market acceptance and market trends in the healthcare sector; the ‎economy generally; consumer ‎interest in Hemostemix’s services and products; competition and ‎Hemostemix’s competitive advantages; and Hemostemix obtaining satisfactory financing to ‎ fund Hemostemix’s operations including any research, trials or studies, and any Litigation. Forward-looking information is Subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Hemostemix to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the ability of Hemostemix to complete clinical trials, complete a satisfactory analyses and file the results of such analyses to gain regulatory approval of a phase II or phase III clinical trial of ACP-01; potential litigation Hemostemis mayface; general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations including the actual results of future research, trials or studies; competition; changes in legislation ‎affecting Hemostemix; the timing and availability of external financing on acceptable terms; long-term capital requirements and future developments in Hemostemix’s markets and the markets in which it expects to compete;‎ lack of qualified, skilled labour or loss of key individuals; and risks ‎related to the COVID-19 pandemic including various recommendations, orders and measures of governmental authorities to ‎try to limit the pandemic, including travel restrictions, border closures, non-essential business closures service disruptions, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, disruptions to economic activity and ‎financings, disruptions to supply chains and sales channels, and a deterioration of general economic conditions including a ‎possible national or global recession or depression;the potential impact that the COVID-19 pandemic may have on Hemostemix which may include a decreased demand for the services that Hemostemix offers; and a deterioration of financial markets that could limit Hemostemix’s ability to obtain external financing. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Hemostemix’s disclosure documents on the SEDAR website at www.sedar.com. Although Hemostemix has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Hemostemix as of the date of this news release and, accordingly, it is Subject to change after such date. However, Hemostemix expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.

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