HELIUS MEDICAL TECHNOLOGIES ANNOUNCES RECEIPT OF REMAINDER OF AB FUNDING, CHANGES TO BOARD OF DIRECTORS, AND EXTENSION OF CRADA AGREEMENT THROUGH DECEMBER 2017
Jan 01, 2016
OTC Disclosure News Service
HELIUS MEDICAL TECHNOLOGIES
ANNOUNCES RECEIPT OF REMAINDER OF
AB FUNDING, CHANGES TO BOARD OF DIRECTORS, AND
EXTENSION OF CRADA AGREEMENT THROUGH DECEMBER 2017
(Newtown PA) –
December 31, 2015 – 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”).
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.
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 of 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.
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™
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.
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)
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 . The contents of this website are not,
and should not be deemed to be, incorporated by reference herein.
Cautionary Disclaimer Statement:
Canadian Securities Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this news release.
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.
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.
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