Hemostemix Inc. announced a private placement of 2,750 convertible debentures units for a price of CAD 1,000 per debenture unit for gross proceeds of CAD 2,750,000 on March 2, 2022. The transaction will include participation from a director of the company for CAD 2,549,000, with whom company has signed a binding term sheet and is offering the same terms to accredited investors who are shareholders of record of March 3, 2022, enabling the Company to accept or reject in its sole discretion. Each debenture unit consists of a CAD 1,000 principal amount debenture and 5,882 transferable debenture warrants.

the debentures mature five years from the closing date and bears interest at a rate of 8% per annum, payable quarterly in arrears in cash or common shares at the option of the company. The principal amount of the debentures may be convertible at the option of the holder into common shares at a price of CAD 0.17 per common share. At the election of the company, any accrued and unpaid interest may be converted into common shares at a conversion price equal to the market price but not less than the conversion price of the debenture.

Each debenture warrant entitles the holder to acquire one common share at a price of CAD 0.20 per common share for a period of 60 months from the closing of the debenture offering. The debenture units and any common shares resulting from conversion of the debentures or the exercise of debenture warrants will be subject to a hold period, if applicable.