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Hemostemix Announces the Appointment of Dr. Ronnie Hershman to the Board of Directors and Provides a Corporate Update

CALGARY, Alberta, Feb. 10, 2020 (GLOBE NEWSWIRE) -- Hemostemix Inc. (“Hemostemix” or the “Company”) (TSXV: HEM; OTC: HMTXF) is pleased to announce the appointment of Dr. Ronnie Hershman, M.D., F.C.C.S., to its Board of Directors. Dr. Hershman is a successful, practicing cardiologist with over three decades of experience. Dr. Hershman graduated Magna Cum Laude from the Sophie Davis Center for Biomedical Research in 1980 and received his medical degree from Mount Sinai Medical Center in 1982. He then continued his medical and cardiovascular training at Mt. Sinai Medical Center.

Dr. Hershman has been an Invasive Cardiologist since 1987 and was involved in many clinical trials for emerging catheter technologies. He was a pioneer in performing laser-assisted coronary angioplasty, starting in private practice on Long Island in 1989. Presently the Medical Director of NYU Langone Long Island Cardiac Care he built and manages a large medical practice, employing cutting-edge technology and continues his practice for patients with cardiovascular and peripheral vascular diseases, employing a non-invasive therapy for patients with intractable Angina and Congestive Heart Failure.  

Dr. Hershman has also been an entrepreneur and investor for more than two decades. He has been involved in life science investing and consulting for several years and previously or currently serves on the boards of medical biotechnology companies Solubest, Ltd., TheraVitae Inc., Nasus Pharma, SanoNash and Optivasive. He also serves as an advisor to a late­stage, life science venture capital company that has funded 24 companies to-date. Dr. Hershman is now an investor in OurCrowd, Ltd., a leading crowd funding company and is the Co-Founder and CEO of HealthEffect, LLC and CLiHealth, LLC, SoLoyal and Nasus Pharma along with SanoNash.

Dr. Hershman continues to evaluate new medical technologies in the USA and Israel. His main interests lie in bringing improved medical technologies from the bench to the clinic, quickly and globally. He is actively seeking to commercialize technologies that improve lives and cure illnesses in the most effective and cost efficient manner.

“Stem Cell therapies are the future in so many chronic illnesses and Hemostemix is an exciting company with a lot of promise in providing solutions and therapeutic options for many patients with critical Cardiovascular illnesses and ischemia,” commented Dr. Hershman. “As an investor and Board Member, I hope to assist in advancing these therapies further and create optimal value for patients and shareholders, alike,” he said.

Dr. Hershman is replacing Mr. Yari Nieken and Mr. Bryson Goodwin who both resigned from their positions with the Company effective February 10, 2020.   Ms. Natasha Sever has also resigned from the position of CFO. The Company will look for suitable replacements for both CEO and CFO positions and Mr. Smeenk will act as the interim CEO until a replacement is hired.  The Company thanks Bryson, Yari and Natasha for their service and wishes them well in their future endeavors.

“It is a great pleasure to welcome Dr. Hershman to the Board of Directors,” said David Wood, Chairman, “as he compliments us with his broad medical experience, biotechnology and business investment acumen and counsel.”

“I am honored and delighted to welcome Dr. Hershman to the Board of Directors and I very much look forward to his counsel,” said Thomas Smeenk, President.

The Company also announces that on January 9, 2020, J.M. Wood Investment Inc. (“JMWI”) sent the Company a Notice of Default and Demand for the immediate repayment of the Company’s previously announced convertible debenture and demand loan. Based on the repayment conditions of the debts, the Company took the position the January 9th notice was premature. On January 24th, JMWI made an application to the Court of Queen’s Bench of Alberta for the issuance of an order appointing a receiver.  The Company responded with a 347 page affidavit including appendices, sworn on January 30th by David Wood, Chairman. The application was heard on January 31st by Madame Justice Horner, who granted a consent order to adjourn the JMWI receivership application to February 20, 2020 to enable the Company to close its financing; granted an order appointing Grant Thornton as inspector; granted an order that the costs of the application of January 31st would only be payable by the Company if the application proceeds on February 20th.  On February 6, 2020 cross examinations on the Affidavits of David Wood and JMWI were heard.

Also, on February 3, 2020 the Company received an action from Aspire Health Science, LLC filed with the Ninth Judicial Circuit Court for Orange County, State of Florida, in connection with the Amended and Restated License Agreement rescinded by Hemostemix on December 5, 2019 due to Aspire’s failure to meet the Condition Precedent of paying US$1,000,000 within 30 business days of September 30, 2019. The Company believes the action is frivolous, without merit, and it intends to vigorously defend its position.

The Company intends to effect repayment of the secured debts and it will provide a further update to the market at that time.  Although the Company is optimistic that it will be successful in raising sufficient funds to meet its obligations, there can be no assurance that the financing will close as anticipated or within the time frames required.

ABOUT HEMOSTEMIX INC.

Hemostemix is a publicly traded autologous stem cell therapy company, founded in 2003. A winner of the World Economic Forum Technology Pioneer Award, the Company developed and is commercializing its lead product ACP-01 for the treatment of CLI, PAD, Angina, Ischemic Cardiomyopathy, Dilated Cardiomyopathy and other heart conditions. ACP-01 has been used to treat over 300 patients, including no-option end-stage heart disease patients,  and it has been the subject of four open label phase II clinical studies which  proved its safety and efficacy.

On October 21, 2019, the Company announced the results from its presentation from its Phase II CLI trial abstract presentation entitled “Autologous Stem Cell Treatment for CLI Patients with No Revascularization Options: An Update of the Hemostemix ACP-01 Trial With 4.5 Year Followup” which noted healing of ulcers and resolution of ischemic rest pain occurred in 83% of patients, with outcomes maintained for up to 4.5 years. The Company’s clinical trial for CLI is ongoing at 20 clinical sites in North America and 56 of 95 subjects have been enrolled to-date.

The Company owns 91 patents across five patent families titled: Regulating Stem Cells, In Vitro Techniques for use with Stem Cells, Production from Blood of Cells of Neural Lineage, and Automated Cell Therapy. For more information, please visit www.hemostemix.com.

Contact:

Thomas Smeenk, President & CEO
Suite 1150, 707 – 7th Avenue S.W.
Calgary, Alberta T2P 3H6
Tel: 905-580-4170

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined under the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential,” and similar expressions, or that events or conditions “will,” “would,” “may,” “could,” or “should” occur. Although Hemostemix believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates, and opinions of Hemostemix management on the date such statements were made. By their nature forward-looking statements are subject to known and unknown risks, uncertainties, and other factors which may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the Company’s ability to fund operations and access the capital required to continue operations and repay its secured debts, the Company’s stage of development, the ability to complete its current CLI clinical trial, complete a futility analysis and the results of such, future clinical trials and results, long-term capital requirements and future developments in the Company’s markets and the markets in which it expects to compete, risks associated with its strategic alliances and the impact of entering new markets on the Company’s operations. Each factor should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. Hemostemix expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. Additional information identifying risks and uncertainties are contained in the Company’s filing with the Canadian securities regulators, which filings are available at www.sedar.com.