Hemostemix Completes $461,230 Private Placement

11/04/2025 – 03:09 PM

Calgary, Alberta – Hemostemix Inc. (TSXV: HEM) (OTCQB: HMTXF), a company specializing in autologous stem cell therapy, has successfully closed the first tranche of its previously announced non-brokered private placement, raising $461,230. This was achieved through the issuance of 4,193,000 units at a price of $0.11 per unit, according to a company statement released on November 4, 2025.

Each unit comprises one common share in Hemostemix and one common share purchase warrant. The warrant allows the holder to acquire an additional common share at $0.15 per share for two years from the offering’s closing date. The Offering also includes an accelerated expiry provision: if, on any 10 consecutive trading days after four months and one day from the closing date, the closing sales price of the Common Shares on the TSX Venture Exchange exceeds a weighted average price of $0.185 per share, Hemostemix can expedite the warrant expiry date to 30 days following a press release announcement.

This financial maneuver represents a strategic move for Hemostemix as it seeks to bolster its working capital and ramp up marketing efforts for VesCell™, its proprietary stem cell therapy targeted towards individuals with limited options for angina, peripheral arterial disease, chronic limb threatening ischemia, ischemic cardiomyopathy, non-ischemic dilated cardiomyopathy, congestive heart failure, and total body ischemia. The funds will be instrumental in driving commercialization efforts and expanding the reach of VesCell™ within these critical therapeutic areas.

In connection with the Offering, Hemostemix paid finders aggregate cash fees of approximately $23,698.40 and issued 215,440 finder’s options. Each finder’s option allows the holder to purchase one common share at an exercise price of $0.15 per share for 24 months from the Offering’s closing date.

The net proceeds from this private placement are earmarked to augment the company’s general working capital and to sustain its ongoing operations, particularly focusing on the marketing and sales of VesCell™. This reflects a clear strategy to drive market penetration and increase adoption of their stem cell therapy.

It’s noteworthy that certain company directors participated directly and indirectly in the Offering, classifying it as a “related party transaction” under Multilateral Instrument 61-101. Hemostemix relied upon exemptions from formal valuation and minority shareholder approval requirements, as the company is not listed on a specified stock exchange, and the transaction’s fair market value did not exceed 25% of the company’s market capitalization.

The Offering remains subject to regulatory approvals, including acceptance from the TSX Venture Exchange. Securities issued through this transaction are subject to a four-month hold period from the closing date, as dictated by applicable Canadian securities laws, along with any additional restrictions under other jurisdictions.

From a financial perspective, while this private placement infuses immediate capital into Hemostemix, investors will be closely watching the potential dilution impact of the newly issued shares and warrants. The exercise of these warrants, if triggered, could further increase the outstanding share count.

Strategically, the success of VesCell™ will be instrumental in driving long-term value for the company. The stem cell therapy market is highly competitive, and Hemostemix’s ability to demonstrate clinical efficacy and secure regulatory approvals will be critical to its success against larger, better-funded competitors.