Hemostemix - CEO, Thomas Smeenk
CEO, Thomas Smeenk
Source: Mining Weekly
  • Stem cell therapy company, Hemostemix (HEM), announced it is selling up to 500 unsecured convertible debentures for US$17.5 million
  • Each convertible debenture will be sold for US$35,000 and can be converted into one of 500 ACP-01 therapeutic production slots (TPS)
  • Alternatively, convertible debentures can be exchanged for HEM common shares
  • Almost every ACP-01 recipient in a previous clinical trial saved a limb from amputation
  • The company will use the funds to re-establishment its production facility, hire and train staff, manufacture ACP-01, and general working capital
  • Hemostemix (HEM) is up 2.78 per cent, trading at $0.18 per share as of 1:18 p.m. EST

Stem cell therapy company, Hemostemix (HEM), announced it is selling up to 500 unsecured convertible debentures for US$17.5 million.

Each convertible debenture will be sold for US$35,000 and can be converted into one of 500 ACP-01 therapeutic production slots (TPS), subject to certain approval. Alternatively, convertible debentures can be exchanged for HEM common shares.

Thomas Smeenk, CEO of HEM, commented,

“43 of 46 ACP-01 recipients in phase two clinical trial saved a limb from amputation, so forward sales of ACP-01 promises to vastly improve quality of life and generate capital that converts to revenue.”

Specifically, the convertible debentures may convert into common shares at the greater of $1.00 per share or the 10-day weighted average price the day before conversion.

Debentures offer flexible options for HEM

Each convertible debenture will accumulate a 6.00 per cent interest each year, which can be paid in common shares at redemption or conversion. Each convertible debenture can be transferred to a third party, including to charitable organizations. Additionally, a convertible debenture can be redeemed at any time HEM at cost plus accrued interest.

At the five-year maturity mark, the company may choose to convert each debenture into common shares under the same value requirements.

“Sold in tranches, exempt compassionate treatment revenue will de-risk the company, ramp-up production based on sales, fund necessary clinical trials and the scale-up of production to 4,000 batches per month, and enable us to work on the first dividend to our shareholders of a new company that will further realize the value of our technologies,” Smeenk said.

The company stated it will use the funds to re-establish its production facility, hire and train staff, manufacture ACP-01 for trials and therapeutic production slots, and general working capital.

Hemostemix (HEM) is up 2.78 per cent, trading at $0.18 per share as of 1:18 p.m. EST.


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