Full Press Release Details
HELIUS MEDICAL TECHNOLOGIES ANNOUNCES RECEIPT OF REMAINDER OF
A&B 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 A&B (HK)
Company Limited ( A&B ), 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 ).
drawdown of USD $5 million from A&B 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
Additional Directors
to the terms of the agreement with A&B, the Company has granted A&B the
right to nominate one director to the Board of the Company and A&B has
appointed Dr. Huaizheng Peng.
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
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.
Board of Directors now consists of Philippe Deschamps, Mitchell Tyler, Edward M.
Straw, Savio Chiu, Blane Walter, and Huaizheng Peng.
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.
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
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 ).
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.
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.
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
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