Hemostemix Announces Settlement Agreement

Hemostemix Inc. (“Hemostemix” or the “Company”) (TSXV: HEM; OTC: HMTXF; FSE: 2VFO.F) Calgary, Alberta — Hemostemix Inc. (“Hemostemix” or the “Company”) (TSXV: HEM; OTC: HMTXF; FSE: 2VFO.F) is pleased to announce that it has entered into a settlement agreement (the “Settlement Agreement”) with Aspire Health Science, LLC (“Aspire”), and certain other persons, to settle all pending litigation with Aspire, and certain other persons, including in respect of the Delaware Federal Action, the Florida State Action and the Florida Federal Action involving those persons. If and when closing of the Settlement Agreement occurs, Aspire, and other signatories to the Settlement Agreement, are required to return all data and intellectual property in relation to ACP-01 in their possession (the “ACP-01 Data”) to Hemostemix. The Settlement Agreement also calls for the performance of a data audit by Hemostemix in relation to the ACP-01 Data in order to review the ACP-01 Data to be returned to Hemostemix (the “Data Audit”), which Data Audit is currently underway.

Closing of the Settlement Agreement, including the return of all ACP-01 Data, is subject to a number of conditions and other ‎‎contingencies as set forth in the Settlement Agreement, including the Data Audit. As such, there can be no assurance that the closing of the Settlement Agreement, including the return of all ACP-01 Data will be ‎completed ‎as proposed or at all. Hemostemix will provide further information in relation to the Settlement Agreement as further information becomes available.

About Hemostemix
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 has published seven peer reviewed articles about the safety and efficacy of its lead product ACP-01 as a treatment of CLI, PAD, Angina, Ischemic Cardiomyopathy, Dilated Cardiomyopathy and other conditions of ischemia. ACP-01 has been used to treat over 300 patients, and it is the subject of a randomized, placebo-controlled, double blind trial of its safety and efficacy in patients with advanced critical limb ischemia who have exhausted all other options to save their limb from amputation.

On October 21, 2019, the Company announced the results 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 Follow-up” 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 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.