RE:Nice readThanks for posting! Great Write Up On HEM! Like the part... "These investors are calling for a 35x upside if all goes as planned." My Top Ten Positions Heading Into Q1: Raging Bull Market, COVID And ESG Investing
Apr. 10, 2021 11:46 PM ETABXXF, KBSF...CCRC, CRYBF, HSDT...3 Likes
7. Hemostemix Inc. (HMTXD) (HEM.V) I'm generally not a biotech investor as it is out of my area of expertise and interest, but I've made an exception on HEM as it has been strongly recommended to me by investor associates who I respect. These investors are calling for a 35x upside if all goes as planned. I'll be happy with a 3x to 5x upside. As a reminder, I don't have any official price targets on pre-revenue companies.
Hemostemix is a stem cell company looking to use cell therapy to save people from amputation of limbs, starting with Critical Limb Ischemia. The company's Phase 2 clinical trial NCT02551679 study period ended December 2020 and investors have been anxiously waiting for the data. The company released news on Friday that provided updates to the trial data, litigation claims against Aspire and Accudata and a capital raise. Follow up visits to trial participants will be completed in the next couple of weeks, with data entry and source document verification underway. Based on the timeline, my guess is we can expect the data to be released in late May or early June.
The company is raising $4 million under pretty favorable terms. $1 million in a private placement with units priced basically at market of $0.50 and $3 million in unsecured notes that are only convertible at the option of Hemostemix, also at $0.50. $2.5 million of the debentures have already been ordered. The fact the the company is able to raise debt and equity on good terms likely means that things are going pretty well. HEM also retained HE Capital for investor awareness services. I can presume that it's only willing to pay for stock promotion because HEM believes that it has something worthwhile to promote.