- 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.