Hemostemix Provides Update on Litigation and Consolidation of its Common SharesSeptember 22, 2020
Calgary, Alberta, September 22, 2020 — Hemostemix Inc. (“Hemostemix”) (TSXV: HEM; OTC: HMTXF) is providing an update on the various litigation matters it is pursuing or defending, as well as an update on the consolidation of its common shares (the “Consolidation”) that was approved by the shareholders of the Corporation at the annual general and special meeting of shareholders held on May 6, 2020 (the “Meeting”).
On June 29, 2020, Hemostemix filed an action in Delaware federal court against Accudata Solutions, Inc. (“Accudata”) for failing to provide a statistical analysis of Hemostemix’s clinical trial data and for failing to return the clinical trial data upon demand. Hemostemix also filed an injunction application to compel Accudata to provide the statistical analysis and clinical trial data to Hemostemix pursuant to Accudata’s contractual obligations.
Aspire Health Science, LLC (“Aspire”) moved to intervene in this action and filed an answer to the original complaint. Oral argument on Hemostemix’s preliminary injunction application against Accudata was conducted on July 15, 2020, and Hemostemix is awaiting a decision on that injunction application.
In addition, Hemostemix was granted leave to file an amended complaint to include claims against Aspire and did so on July 27, 2020. Aspire filed a Motion to Dismiss Hemostemix’s amended complaint on August 14, 2020 and Hemostemix filed a response to Aspire’s Motion to Dismiss on August 28, 2020. Accudata filed a Motion to Dismiss Hemostemix’s amended complaint on August 24, 2020, and Hemostemix filed a response to Accudata’s Motion to Dismiss on September 8, 2020.
On January28, 2020, Aspire filed an action against Hemostemix in Florida state court for declaratory relief and specific performance to enforce the amended licensing agreement among Aspire and Hemostemix which Hemostemix properly rescinded on December 5, 2019 for Aspire’s default. Hemostemix filed a Motion to Dismiss the Florida action on the basis of lack of personal jurisdiction, to challenge service of the complaint, and to challenge the sufficiency of the pleading. Aspire also brought a Motion for a “Speedy Hearing”.
Argument was heard on Hemostemix’s Motion to Dismiss on June 25, 2020 and Hemostemix is awaiting a decision. The Florida Court stayed any consideration of Aspire’s Motion for Speedy Hearing until it rules on the Hemostemix’s jurisdictional challenge. Pursuant to an earlier case management order, Hemostemix filed a case management report on August 31, 2020 calling for stay of all matters, including discovery, pending a ruling on its jurisdictional challenge.
On June 5, 2020, Hemostemix filed an Originating Application for a writ of Replevin against data and property improperly being held by Aspire. This application was dismissed at the time of hearing on a service ex juris issue. Hemostemix initially appealed the trial judge’s decision. However, given the cost and burden associated with a lengthy and expensive appeal, Hemostemix opted not to file a factum in support of its appeal, resulting in the Registrar striking the appeal for administrative reasons without any adjudication of merits.
Further to the approval of the 20 for 1 common share Consolidation that was approved at the Meeting, Hemostemix intends to implement the Consolidation prior to December 31, 2020. Hemostemix will provide further information in respect of the Consolidation in future news releases when the board of directors of Hemostemix has made a decision in respect of the effective date of the Consolidation.
Hemostemix is a publicly traded autologous stem cell therapy company. A winner of the World Economic Forum Technology Pioneer Award, Hemostemix developed and 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 300 patients, and it is the subject of a randomized, placebo-controlled, double blind trial of its safety and efficacy in patients with advanced critical limb ischemia who have exhausted all other options to save their limb from amputation.
On October 21, 2019, Hemostemix announced the results from its Phase II CLI trial abstract entitled “Autologous Stem Cell Treatment for CLI Patients with No Revascularization Options: An Update of the Hemostemix ACP-01 Trial With 4.5 Year Followup” which noted healing of ulcers and resolution of ischemic rest pain occurred in 83% of patients, with outcomes maintained for up to 4.5 years.
Hemostemix owns 91 patents across five patent families titled: Regulating Stem Cells, In Vitro Techniques for use with Stem Cells, Production from Blood of Cells of Neural Lineage, and Automated Cell Therapy. For more information, please visit www.hemostemix.com.
Contact: Thomas Smeenk, President, CEO & Co-Founder, TSmeenk@Hemostemix.com 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 regarding: the status of Hemostemix’s litigation, including decisions on such litigation; further information to be provided in respect of the Consolidation, including the date by which Hemostemix intends to implement the Consolidation; and the commercialization of ACP-01. There can be no assurance that such forward-looking information will prove to be accurate, and 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 timing of receipt of its full and complete clinical trials data; the results of ACP-01 research, trials and studies being equivalent to or better than previous research, trials or studies as well as management’s expectations of anticipated results; Hemostemix’s general and administrative costs remaining constant; the receipt of all required regulatory approvals for research, trials or studies as well as any required or desired financings of Hemostemix, including TSX Venture Exchange acceptance and any third party consents; 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 obtaining satisfactory financing to fund Hemostemix’s operations including any research, trials or studies, and the 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 its current CLI clinical trial, complete a satisfactory futility analysis and the results of such and future clinical trials; litigation and potential litigation that Hemostemix may face; 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, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; the potential impact that the COVID-19 pandemic may have on Hemostemix 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, 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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