Business
Hemostemix Announces Engagement of Oak Hill Asset Management Inc.
Calgary, Alberta--(Newsfile Corp. - March 7, 2024) - Hemostemix Inc. (TSXV: HEM) (OTCQB: HMTXF) (...
About this update from Hemostemix Inc
[{"type":"text","content":"Hemostemix Announces Engagement of Oak Hill Asset Management Inc.Calgary, Alberta--(Newsfile Corp. - March 7, 2024) - Hemostemix Inc. (TSXV: HEM) (OTCQB: HMTXF) (FSE: 2VF0) (\"Hemostemix\" or the \"Company\") is pleased to announce the non-exclusive engagement of Oak Hill Asset Management Inc. (\"OHAM\"), an Exempt Market Dealer to provide capital markets advice related to the Company's capital markets strategy. Services include advice on the structure of equity or debt capital financing and the identification of potential future investors. The Company intends to raise approximately C$6 million in low-dilution capital (the \"Offering\"). Proceeds will be used to re-establish production of ACP-01 for sale as an exempt compassionate treatment and to complete its phase III CLTI clinical trial. Pursuant to an engagement letter between the Company and OHAM, the Company has agreed to pay OHAM a cash fee of $12,000 plus $20,000 in common shares as a work fee. Additional fees would be paid on any financing raised by OHAM. Proceeds from the Offering will allow the Company to lease ready-to-occupy cGMP production capacity in Puerto Rico in 2024 and generate revenue by the end of 2025 through 30-40 exempt compassionate treatments per month, while scaling production and progressing its clinical trial. ​Sales of ACP for CLTI treatments will be through clinical trial sites (to patients who do not meet inclusion criteria), through limb salvage clinics and podiatrists. To-date, seven clinical trial sites have agreed to refer patients to Hemostemix for exempt compassionate treatments; and, have agreed to process up to 226 of Hemostemix's referrals to them per month. Puerto Rico's Act 60 legislation enables the company to obtain 50% cash back on eligible expenses including clinical trials. Additionally, ACT 60 provides the company with a 15-year 1% profit tax structure, and a 20% tax credit for offshore expenses.​The structure and price of the Offering has yet to be determined and the Company will issue a follow-up news release once details are available. The Company is confident that it can be completed on a low-dilutive basis that appropriately values the significant, near-term revenue and cash flow streams.\"The 498 treatments of ACP, including the seven clinical studies published in peer reviewed journals to-date, demonstrate AC...