Helius Medical Technologies, Inc. (HSDT: OTCQB) | Helius Medical Technologies Announces Receipt of Remainder of A&B Funding, Changes to Board of Directors, and Extension of CRADA Agreement Through December 2017

Helius Medical Technologies Announces Receipt of Remainder of AB Funding, Changes to Board of Directors, and Extension of CRADA Agreement Through December 2017

Dec 31, 2015

OTC Disclosure News Service

Helius Medical Technologies, Inc. (CSE:HSM; OTCQB:HSDT) (“Helius”, or
the “Company”), a medical technology company focused on the treatment of
neurological symptoms caused by disease or trauma, today announced that
the Company has elected to draw down on the remaining USD $5 million
credit facility from AB (HK) Company Limited (“AB”), appointed two new
members to its Board of Directors and obtained an extension to its
Cooperative Research and Development Agreement (“CRADA”) with the US
Army Medical Research and Material Command (“USAMRMC”).

AB Financing

The drawdown of USD $5 million from AB was in exchange for 5,555,556
shares of Common Stock at a price of $0.90 per share and a warrant to
purchase 2,777,778 shares of Common Stock for a period of three (3)
years with an exercise price of $1.35 per share, a 50% premium based on
the price of the new shares. The shares will be subject to a four-month
statutory hold period. Please see the Company’s news release dated
October 13, 2015 for more information about the credit facility with AB.

Additional Directors

Pursuant to the terms of the agreement with AB, the Company has granted
AB the right to nominate one director to the Board of the Company and
AB has appointed Dr. Huaizheng Peng.

Dr. Peng is a General Manager, and non-executive Director of China
Medical System Holdings (“CMS”) and in charge of international
operations. Prior to joining CMS, Dr. Peng was a private equity firm
partner at Northland Bancorp, head of life sciences and as a director of
corporate finance at Seymour Pierce and served as a non-executive
Director of China Medstar, an AIM listed medical device company.

Helius is also pleased to announce that, in addition to the appointment
of Dr. Peng to Board, it has appointed Blane Walter as a new member as
of December 29, 2015. Concurrently with these appointments, Joyce
LaViscount and Yuri Danilov have resigned as Directors to make room for
the new Directors, not due to any disagreement with the Company. Ms.
LaViscount will continue to serve as Chief Financial Officer and Chief
Operating Officer of Helius. Helius wishes to express its thanks to Ms.
LaViscount and Dr. Danilov for their invaluable contributions throughout
their tenure as Directors.

Helius’ Board of Directors now consists of Philippe Deschamps, Mitchell
Tyler, Edward M. Straw, Savio Chiu, Blane Walter, and Huaizheng Peng.

Mr. Walter is a Partner at Talisman Capital Partners, a private
investment partnership located in Columbus, Ohio. He was the founder of
inChord Communications, Inc., which he built into the largest
independently-owned, healthcare communications company in the world. In
2005, inChord was acquired by Ventiv Health, the largest provider of
outsourced sales and clinical services serving the pharmaceutical
industry to create inVentiv Health. In 2008, Walter became CEO of the
combined public company.

In connection with their appointment to the Board, each Mr. Walter and
Dr. Peng has been granted an option to purchase up to 50,000 shares of
Common Stock at an exercise price equal to CAD$ 1.24 with one-third of
such shares vesting on the date of grant and another one-third vesting
on first and second anniversary of the date of grant.

CRADA Extension

Also announced was that Helius through its wholly owned subsidiary
NeuroHabilitation Corporation (“NHC”), and the USAMRMC have modified
their existing CRADA to extend the agreement to December 2017. The CRADA
partners Helius and the USAMRMC in the development of the company’s
Portable Neuromodulation Stimulator (“PoNS™”) device, a noninvasive
brain stimulation device that is being developed for the treatment of
balance disorder in patients with mild to moderate traumatic brain
injury (“mTBI”).

The CRADA also allows the USAMRMC to research other potential uses of
the device relevant to injured service members, such as the
effectiveness of the PoNS™ device in treating tinnitus, post-traumatic
stress, or sleep disturbances.

“We are very pleased to be formally extending our partnership with the
U.S. Army through 2017. Partnerships such as this are crucial to Helius’
development of the PoNS™ in both the clinical and commercial settings,”
said the CEO of Helius, Philippe Deschamps.

About the PoNS™

The PoNS™ device is a non-invasive means for delivering neurostimulation
through the tongue. The PoNS™ therapy is currently being studied in the
United States for the treatment of balance disorder for subjects with
mild to moderate Traumatic Brain Injury (“mTBI”), and in Canada for the
treatment of gait and balance disorder for subjects with MS.

The PoNS™ device is believed to be the first non-invasive means for
delivering neurostimulation through the tongue. Researchers believe that
use of the tongue as a gateway to the brain may be one of the most
natural, non-invasive and direct ways to stimulate the brain. The tongue
is anatomically unique, being richly innervated by thousands of nerve
fibers and interconnected to the brainstem by two major cranial nerves.

About Helius Medical Technologies (HMT)

Helius Medical Technologies is a medical technology company focused on
neurological wellness. HMT seeks to develop, license and acquire unique
and non-invasive platform technologies that amplify the brain’s ability
to heal itself. HMT intends to file for U.S. Food and Drug
Administration clearance for the PoNS™ device. For more information,
please visit www.heliusmedical.com.
The contents of this website are not, and should not be deemed to be,
incorporated by reference herein.

Cautionary Disclaimer Statement:

The Canadian Securities Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this news
release
.

Forward-looking statements are often identified by terms such as “will”,
“may”, “should”, “anticipate”, “expects” and similar expressions. All
statements other than statements of historical fact, included in this
release are forward-looking statements that involve risks and
uncertainties. There can be no assurance that such statements will prove
to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from the Company’s
expectations include the failure to satisfy the conditions of the
Canadian Securities Exchange and other risks detailed from time to time
in the filings made by the Company with securities regulations.

The reader is cautioned that assumptions used in the preparation of any
forward-looking information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from those
predicted, as a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the control
of the Company. The reader is cautioned not to place undue reliance on
any forward-looking information. Such information, although considered
reasonable by management at the time of preparation, may prove to be
incorrect and actual results may differ materially from those
anticipated. Forward-looking statements contained in this news release
are expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made as of
the date of this news release and the Company will update or revise
publicly any of the included forward-looking statements as expressly
required by applicable law.

Copyright © 2015 Businesswire. All Rights Reserved

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/HSDT/news?id=122391

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