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Hemostemix Announces $2 Million Loan Facility

Hemostemix Announces $2 Million Loan Facility
CALGARY, Alberta, Aug. 01, 2019 — Hemostemix Inc. (“Hemostemix” or the “Company”) (TSX VENTURE: HEM; OTCQB:
HMTXF), a biotechnology company focused on developing and commercializing innovative blood-derived stem cell therapies for
medical conditions not adequately addressed by current treatments, announces that it has entered into a loan agreement with
J.M. Wood Investments Ltd. (“JMWI”) for a secured loan in an aggregate principal amount of up to $2,000,000 (the “Loan”).
Under the terms of the Loan, JMWI will advance a minimum amount of $500,000 to the Company upon execution of the Loan
Agreement. Thereafter, the Company may request additional monthly advances, subject to the JMWI’s review and approval of
the Company’s monthly budget expenditures, up to a maximum of $2 million. The Loan bears interest at a rate of 12% per
annum and is secured by a general security agreement in favour of JMWI in respect of all of the personal property of the
Company. The Loan is repayable on a maturity date which is 12 months from the date of the first advance and the Company is
entitled to prepay any amount outstanding under the Loan without penalty. After September 30, 2019, JMWI may provide the
Company with at least 60 days’ written notice requiring repayment of the outstanding principal amount of the Loan plus any
accrued and unpaid interest. As security for the Company’s indebtedness under the Loan, the Company has agreed to enter a
general security agreement over all of the personal property of the Company in favour of JMWI. The proceeds of the Loan will
be used to fund the Company’s current Phase II clinical trial for critical limb ischemia, the Company’s other clinical trial
applications and for general working capital.
The Company is at arm’s length with JMWI and JMWI is not a “related party” of the Company within the meaning of Multilateral
Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Loan was conditionally approved by
the TSX Venture Exchange (“TSXV”) on July 30, 2019.
Hemostemix is a publicly traded clinical-stage biotechnology company that develops and commercializes innovative bloodderived
cell therapies for medical conditions not adequately addressed by current treatments. It is one of the first clinical-stage
biotech companies to test a stem-cell therapy in an international, multicenter, Phase II clinical trial for patients with critical
limb ischemia (“CLI”), a severe form of peripheral artery disease (“PAD”) caused by reduced blood flow to the legs. The Phase
II trial targets a participant’s diseased tissue with proprietary cells grown from his or her blood that can support the formation of
new blood vessels. The Company’s intellectual property portfolio includes over 50 patents issued or pending throughout the
world. Hemostemix has a manufacturing contract with Aspire Health Science, LLC (“Aspire”), for the production of ACP-01 and
for research and development purposes at Aspire’s Orlando, Florida, facility. Building towards commercialization, Hemostemix
has also licensed the use, sale and import of ACP-01 for certain indications to Aspire in certain jurisdictions. The Company is
continuing research and development of its lead product, ACP-01 with other applications, including cardiovascular, neurological
and vascular indications.
For more information, please visit or email
Kyle Makofka, CEO
Suite 2150, 300 – 5th Avenue S.W.
Calgary, Alberta T2P 3C4
Phone: (403) 506-3373
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 Statements
This release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts
and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,”
“projects,” “potential,” and similar expressions, or that events or conditions “will,” “would,” “may,” “could,” or “should” occur.
Although Hemostemix believes the expectations expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in
forward-looking statements. Forward-looking statements are based on the beliefs, estimates, and opinions of Hemostemix
management on the date such statements were made. By their nature forward-looking statements are subject to known and
unknown risks, uncertainties, and other factors which may cause actual results, events or developments to be materially
different from any future results, events or developments expressed or implied by such forward-looking statements. Such
factors include, but are not limited to, the Company’s stage of development, future clinical trials and results, long-term capital
requirements and future ability to fund operations, future developments in the Company’s markets and the markets in which it
expects to compete, risks associated with its strategic alliances and the impact of entering new markets on the Company’s operations. Each factor should be considered carefully and readers are cautioned not to place undue reliance on such forwardlooking
statements. Hemostemix expressly disclaims any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events, or otherwise.

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