Hemostemix Announces Closing of First Tranche of Private Placement

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[{"type":"text","content":"Hemostemix Announces Closing of First Tranche of Private PlacementCalgary, Alberta--(Newsfile Corp. - March 5, 2020) -  Hemostemix Inc. (TSXV: HEM) (OTC: HMTXF) (\"Hemostemix\" or the \"Company\") announces it has closed the initial tranche of its previously announced non-brokered private placement of units (\"Units\") for gross proceeds of up to $3,000,000 (the \"Offering\"). The first tranche of the Offering consisted of the issuance of an aggregate of 254,620,442 Units at a price of $0.01 per Unit for gross proceeds of $2,546,204.42. Each Unit consists of one common share in the capital of the Company (\"Common Share\") and one common share purchase warrant (\"Warrant\"), with each full Warrant entitling the holder to acquire one Common Share at a price of $0.05 per Common Share for a period of 12 months from the closing of the Offering, subject to the accelerated expiry provision described below. A total of 31,172,320 of the Units issued concurrently with the closing of the Offering were issued to three directors of the Company on the same terms as the Offering.If, on any 10 consecutive trading days occurring after four months and one day has elapsed following the closing date of the Offering, the closing sales price of the Common Shares (or the closing bid, if no sales were reported on a trading day) as quoted on the TSXV is greater than $0.07 per Common Share, the Company may provide notice in writing to the holders of the Warrants by issuance of a press release that the expiry date of the Warrants will be accelerated to the 30th day after the date on which the Company issues such press release. In connection with the Offering, the Company paid eligible finders aggregate cash finders fees of approximately $101,315 and issued an aggregate of 10,131,520 finder warrants. Each finders warrant is exercisable for a period of 12 months from the closing date to acquire Units at a price of $0.01 per Unit. Net proceeds from the Offering are expected to be used for secured debt repayment ($2,233,118.30), additional interest and recoverable costs associated with the secured debt (unknown at this time), legal expenses ($30,000), audit expense ($30,000), costs for a statistician to perform an interim clinical trial analysis and report ($50,000) and the balance for unallocated working capital and for general corporate purposes.In co...

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