Hemostemix Inc. announced that it will issue 500 of 6% unsecured convertible debentures at a price of $35,000 each for the gross proceeds of $17.5 million on March 7, 2023. The convertible debentures may be converted into one of 500 ACP-01 therapeutic production slots (“TPS”), subject to patients' compassionate exemption from regulatory approval, or is convertible into common shares. Each convertible debenture is transferable to a third party, including to charitable organizations, and each convertible debenture can be redeemed at any time by the company at cost plus accrued interest.

At maturity, the company may choose to convert each convertible into common shares at the greater of $1 per share or the 10-day weighted average price on the date preceding conversion. The convertible debenture is subject to all necessary regulatory approvals including acceptances from securities regulators and the TSX Venture Exchange. All securities and convertible debentures issued in connection with the offering will be subject to definitive documentation and applicable Canadian securities laws.

In addition, other restrictions may apply under applicable securities laws when sold in jurisdictions outside of Canada.