Toronto, Ontario and Boston, Massachusetts--(Newsfile Corp. - March 24, 2026) - Sernova Biotherapeutics (TSX: SVA) (OTC Pink: SEOVF) (FSE: PSH0) ("Sernova" or the "Company"), a leading regenerative medicine company focused on developing its Cell Pouch Bio-hybrid Organ as a functional cure for type 1 diabetes (T1D), today announced the closing of its non-brokered private placement financing that has secured total gross proceeds of $2.1 million. The Company issued 13,762,659 units in connection with the private placement at a price of $0.15 per unit. Each unit consists of one common share of the Company and one common share purchase warrant exercisable at $0.25 per share for a period of 36 months, subject to acceleration provisions. The securities issued in connection with the private placement are subject to a four-month hold period under applicable securities laws in Canada.

"This financing, combined with $5.5 million committed by one of our board members and the expected near-term retirement of approximately $17 million of debt, significantly strengthens our balance sheet and enables our plans to advance our Cell Pouch Bio-hybrid Organ clinical program with the mission to develop a functional cure for type 1 diabetes," commented Sernova Chief Executive Officer, Jonathan Rigby.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States absent registration or an applicable exemption.

ABOUT SERNOVA BIOTHERAPEUTICS

Sernova Biotherapeutics is a clinical-stage company developing regenerative medicine therapeutics combining its Cell Pouch with human donor cells or stem-cell derived islet-like clusters in collaboration with Evotec to create bio-hybrid organs to treat T1D. A bio-hybrid organ is comprised of non-biomaterials, such as the Cell Pouch, integrated with living tissues to restore or enhance the function of a compromised organ.

The TSX has not reviewed this news release and does not accept responsibility for the accuracy or adequacy of this news release.

FORWARD-LOOKING INFORMATION

This press release contains forward-looking statements within the meaning of applicable Canadian securities laws. Forward-looking statements in this press release include our expectations to receive committed funds from our director, to retire significant debt and to advance our T1D clinical program. With respect to the forward-looking statements contained in this press release, Sernova has made numerous assumptions regarding, among other things: the company's ability to secure additional financing on reasonable terms, or at all; and the ability to conduct all required preclinical and clinical studies for the company's Cell Pouch, including the timing and results of those trials. A more complete discussion of the risks and uncertainties facing Sernova appears in Sernova's Annual Information Form for the year ended October 31, 2025, filed with Canadian securities authorities and available at www.sedarplus.ca, as updated by Sernova's continuous disclosure filings, which are available at www.sedarplus.ca. All forward-looking statements herein are qualified in their entirety by this cautionary statement, and Sernova disclaims any obligation to revise or update any such forward-looking statements or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments, except as required by law.

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