BioStem Technologies Enters Into a Share Exchange Agreement

Rhea-AI Summary

BioStem Technologies Inc. (OTCQB: BSEM) announced on February 14, 2023, a Share Exchange Agreement with M.W. Jens Realty Investments, LLC to acquire 10% of the issued shares of its subsidiary, Blue Tech Industries, Inc. The agreement comes after a four-year partnership aimed at developing BioStem's tissue allograft division. In exchange for the shares, BioStem will issue 500,000 new shares of its common stock. CEO Jason Matuszewski expressed commitment to the company’s direction through this agreement, highlighting its focus on regenerative therapies and innovative manufacturing processes.

Positive

• Acquisition of 10% of Blue Tech Industries' shares indicates strategic growth.
• The transaction reflects BioStem's commitment to its tissue allograft division after four years of investment.
• Issuance of 500,000 shares may enhance investor confidence in future growth.

Negative

• Potential dilution of existing shareholders' equity due to the issuance of new shares.
• Company has faced significant losses since inception, which may affect future performance.

The Company will Acquire Back 10% of Issued and Outstanding Shares of its Non-Wholly Owned Subsidiary and Manufacturing Division

POMPANO BEACH, FLORIDA., Feb. 14, 2023 (GLOBE NEWSWIRE) -- BioStem Technologies Inc. (“BioStem” or the “Company”) (OTCQB: BSEM), announced today that it has entered into a Share Exchange Agreement (the “Agreement”) with M.W. Jens Realty Investments, LLC ("M.W. Jens"), a shareholder of Blue Tech Industries, Inc. (“Blue Tech”), a Delaware corporation which is a non-wholly owned subsidiary of Biostem Technologies, and manufacturing division for the Company’s tissue allografts.

“We are happy to come to an agreement after four years of our partner’s investment to get our Tissue allograft division up and running. The completion of this share exchange shows the level of commitment in where we are going with the company,” said Jason Matuszewski, Chief Executive Officer of BioStem.

Pursuant to the Agreement, the Company agrees to acquire the shares of Blue Tech Common Stock held by M.W. Jens in exchange for the issuance to M.W. Jens of 500,000 shares of common stock, par value $0.001, of BioStem Common Stock.

About BioStem Technologies, Inc. (OTCQB: BSEM): BioStem Technologies is a leading innovator focused on harnessing the natural properties of perinatal tissue in the development, manufacture, and commercialization of allografts for regenerative therapies. The Company is focused on manufacturing products that change lives, leveraging its proprietary BioRetain^® processing method. BioRetain^® has been developed by applying the latest research in regenerative medicine, focused on maintaining growth factors and preserving tissue structure. BioStem Technologies' quality management system and standard operating procedures have been reviewed and accredited by the American Association of Tissue Banks ("AATB"). These systems and procedures are established per current Good Tissue Practices ("cGTP") and current Good Manufacturing Processes ("cGMP"). Our portfolio of quality brands includes VENDAJE^TM, VENDAJE^TM AC, and VENDAJE^TM OPTIC. Each BioStem Technologies placental allograft is processed at the Company's FDA registered and AATB accredited site in Pompano Beach, Florida. 

Forward-Looking Statements: Except for statements of historical fact, this release also contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate”, “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements with respect to the operations of the Company, strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. These factors include, but are not limited to: (1) the impact of any changes to the reimbursement levels for the Company’s products; (2) the Company faces significant and continuing competition, which could adversely affect its business, results of operations and financial condition; (3) rapid technological change could cause the Company’s products to become obsolete and if the Company does not enhance its product offerings through its research and development efforts, it may be unable to effectively compete;(4) to be commercially successful, the Company must convince physicians that its products are safe and effective alternatives to existing treatments and that its products should be used in their procedures; (5) the Company’s ability to raise funds to expand its business; (6) the Company has incurred significant losses since inception and may incur losses in the future; (7) changes in applicable laws or regulations; (8) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (9) the Company’s ability to maintain production of its products in sufficient quantities to meet demand; and (10) the COVID-19 pandemic and its impact, if any, on the Company’s fiscal condition and results of operations; You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

BioStem Technologies, Inc.
Phone: 954-380-8342
Website: http://www.biostemtechnologies.com
Email: info@biostemtech.com
Twitter: @BSEM_Tech
Facebook: BioStemTechnologies

Media and Investor Relations:
Russo Partners, LLC
Nic Johnson
12 West 27th Street, 4th Floor
New York, NY 10001
T: 303-482-6405
Nic.Johnson@russopartnersllc.com

FAQ

What is the recent acquisition by BioStem Technologies (BSEM)?

BioStem Technologies (OTCQB: BSEM) has entered into a Share Exchange Agreement to acquire 10% of Blue Tech Industries' shares.

How many shares will BioStem issue for the acquisition?

BioStem will issue 500,000 shares of its common stock in the acquisition deal.

What is the significance of BioStem's acquisition of Blue Tech shares?

The acquisition reflects BioStem's commitment to its tissue allograft division and strategic growth after years of partnership.

When was the acquisition agreement announced for BioStem Technologies (BSEM)?

The acquisition agreement was announced on February 14, 2023.