Helius Medical Technologies (HSDT) (CSE: HSM)

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Helius Medical Technologies (HSDT) (CSE: HSM) Announces Closing of Cad $2,208,110 Non-Brokered Private Placement


NEWTOWN, PA / TheNewswire / April 30, 2015 - Helius Medical Technologies, Inc. (CSE: HSM; OTCQB: HSDT) ("Helius", or the "Company") is pleased to announce that it has closed a non-brokered private placement (the "Financing") raising gross proceeds of CAD $2,208,110 (approximately USD $1,825,937) by the issuance of 849,273 units (each a "Unit") at a price of CAD $2.60 per Unit (USD $2.15 per Unit). Each Unit consists of one (1) common share and one half of one (1/2) common share purchase warrant (each a "Warrant"). Each whole Warrant entitles the holder thereof to purchase one additional common share of the Company at a price of approximately CAD $3.62 per share (USD $3.00 per share) for a period of thirty-six (36) months from the closing date of the Financing.

The Company has agreed to pay a cash finder's fee of CAD 101,494 (USD $84,074) in connection with this Financing, as well as 27,396 finder's warrants (the "Finder's Warrants"). Each Finder's Warrant entitles the holder thereof to purchase one additional common share of the Company at a price of CAD $3.62 per share (USD $3.00 per share) for a period of thirty-six (36) months from the closing date of the Financing.

All securities issued in this Financing are subject to a statutory hold period expiring on September 1, 2015.

The Financing will provide further funding for the development of the PoNSTM technology and for general corporate purposes.

About Helius Medical Technologies (HMT)

Helius Medical Technologies is a medical technology company focused on neurological wellness. The company's mission is to develop, license and acquire non-invasive treatments designed to help patients affected by neurological symptoms caused by disease or trauma. For more information, please visit .

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Helius Medical Technologies, Inc. (HSDT) (CSE:HSM)



Helius Medical Technologies



5/12/15 Share Price - CSE: HSM (C$ 2.76), OTCQB: HSDT (US $2.33)





The Company and Its Technology

Founded by current management in 2014, Newtown, Pennsylvania-based Helius’s corporate focus is bringing to market innovative, non-invasive treatments that promote healing of various brain-related maladies. These treatments are based on research carried out at the Tactile Communication and Neurohabilitation Laboratory (TCNL) at the University of Wisconsin related to electrochemical stimulation of the human brain to encourage the brain’s own ability to create or rehabilitate damaged neural pathways and sensory capabilities.



The company’s flagship product is its Portable Neuromodulation Stimulation (PoNS™) non-invasive medical treatment technology, which an increasing number of studies are showing can produce significant improvement for patients suffering from brain-related maladies as diverse as the difficulty sufferers of mild-to-moderate brain trauma have walking and the balance disorders associated with multiple sclerosis. The PoNS™ device, in combination with the company’s proprietary Cranial Nerve – Non-Invasive Neuromodulation (CNNIN) physical therapy protocol, promotes the human brain’s own ability to heal itself (commonly referred to as “neurostimulation”) after suffering from traumatic, degenerative, chemical and other dysfunctions.



Four major universities in the US and Canada are each currently involved in two separate feasibility studies and two separate Phase III clinical trials of the company’s technology with reportable results expected to be made available to Health Canada and the US Food and Drug Administration (FDA) during 2015 or 2016. A fifth multi-site, double-blind, randomized study of PoNS™ and CNNIN has received approval from the FDA and will begin shortly.



Helius’s Partners

US Armed Forces – Brain trauma is a common element of armed conflict. The US Army’s Medical Research and Materiel Command is actively partnering with Helius (including providing development funding) in developing Helius’s technology for future use in treating armed forces troops and veterans for illnesses as diverse as tinnitus, post-traumatic stress disorder and general pain relief. In return for not-yet-specified financial support for the continued development of PoNS™, the US government will have certain rights to use any related FDA-approved technology under a non-exclusive license.



TCNL – By providing Helius with access to high quality insights and knowledge gained via brain-related research carried out since the 1970s, TCNL’s partnership gives the company information that is indispensable in maximizing efficient use of corporate assets and management efforts at new product development.

Ximedica – ISO 13485 certified, FDA-approved and experienced in manufacturing medical devices for US and global customers, Providence, Rhode Island-based Ximedica is primarily responsible for designing, manufacturing and distributing Helius’s PoNS™ device.



The Market

The potential near-term market for Helius’s technology is substantial. For example, since 2000 members of the US armed forces have sustained nearly 300,000 traumatic brain injuries. And in the US alone approximately 250,000 – 350,000 people suffer from multiple sclerosis. These two initial applications, which company management estimates could generate combined revenues of approximately US$5.5 billion, are a subset of the total potential applications the company’s neurostimulation expertise could be applied to. Beyond these specific applications, management expects additional applications will be investigated in due course, including muscular dystrophy, spina bifida, Parkinson’s and Alzheimer’s.



Management Team

Helius currently has three full-time employees and 15 full-time equivalent outside consultants.



Financial

For the nine months ending December 31, 2014 the company reported a net loss of US$9.2 million. As of the same date, the company had cumulative losses of US$18.7 million, reflecting losses incurred before the company’s reverse merger with a firm that had incurred previous losses. As of 12/31/14 the company’s cash balance was US$2.9 million.



Recent News

April 30, 2015 – Company raised C$2.2 million/US$1.8 million selling 849,273 units (1 common share,