Dr. Philip Toleikis reports

SERNOVA ANNOUNCES EXECUTIVE ALIGNMENT AND APPOINTS NEW BOARD CHAIR

Sernova Corp. has provided the outcomes from a strategic and executive leadership review conducted by its board of directors.

Following the recent 2023 annual general meeting of shareholders, the Sernova board welcomed Brett Whalen, Dr. Steven Sangha and Bertram von Plettenberg as newly elected directors. The newly constituted board has appointed Mr. Whalen as its new chair, Mr. von Plettenberg to serve on its audit and compensation committees, and Dr. Sangha to serve on its nomination and corporate governance committee. In addition, the new board has determined that it is in the best interest of the company that Dr. Philip Toleikis remain as president and chief executive officer and continue leading the company's management team and executing Sernova's vision.

"As newly appointed chair, I would like to welcome Dr. Sangha and Mr. von Plettenberg," said Mr. Whalen. "As a long-standing shareholder and newly elected board member, I am excited to take on the role as chair. I look forward to helping guide the company through its next critical phase of development."

Sernova's new board and management team are fully aligned to position the company in the biotech sector as a leading player developing cell-based functional cures for Type 1 diabetes (T1D), hypothyroid disease and rare diseases, such as hemophilia A, and are committed to unlocking the value inside of Sernova by ensuring the market recognizes the full potential of the company and its extendible cell therapy platform and technologies.

The board recognizes the contributions of the concerned shareholders group that engaged in the democratic process for the recent AGM, and therefore the company intends, as an act of good faith, and in the interest of fully aligning Sernova shareholders with management and the board, to reimburse the concerned shareholders group for their reasonable AGM-related expenses. In addition, the company has repriced the recently issued options granted to the board members to $1.20 per share from 84 cents, reflecting the unanimous belief from the board that the market is undervaluing the company at this time. In a statement from the concerned shareholders group: "The newly constituted board seems aligned with shareholder interests as evidenced by the above actions. We are pleased to note a change in tone and energy resulting from the new board composition. We are confident they will bring about the necessary changes to unlock value for the short-, medium- and longer-term horizons."

Dr. Toleikis added: "The most promising days for Sernova from a program and business development perspective are ahead. We look forward to sharing the updated results from our ongoing T1D phase 1/2 trial with our Cell Pouch system at the upcoming American Diabetes Association 83rd Scientific Sessions meeting on June 24 and advancing our second patient cohort towards full enrolment followed by anticipated initial interim results by the end of 2023. Furthermore, we are thrilled to be advancing on schedule the first human clinical studies with iPSC-based insulin-producing islet-like clusters in 2024 under our partnership with Evotec SE that is catching the eye of the investment and pharmaceutical business communities."

Lastly, Sernova directors Deborah Brown and Dr. Mohammad Azab have retired from the company's board, effective May 30. "The board and management wish to recognize and thank Ms. Brown and Dr. Azab for their years of service and contributions in providing guidance to the company, particularly relating to corporate governance and clinical development, respectively, during their tenure," said Mr. Whalen.

About Sernova Corp.

Sernova is a clinical-stage biotechnology company that is developing therapeutic cell technologies for chronic diseases, including insulin-dependent diabetes, thyroid disease and blood disorders that include hemophilia A. Sernova is currently focused on developing a functional cure for insulin-dependent diabetes with its lead asset, the Cell Pouch system, a novel implantable and scalable medical device with immune-protected therapeutic cells. On implantation, the Cell Pouch forms a natural vascularized tissue environment in the body for long-term survival and function of therapeutic cells that release essential factors that are absent or deficient in the bodies of patients with certain chronic diseases. Sernova's Cell Pouch system has demonstrated its potential to be a functional cure for people with T1D in a continuing phase 1/2 clinical study at the University of Chicago. Sernova is also advancing a proprietary technology in collaboration with the University of Miami to shield therapeutic cells from immune system attack with the goal to eliminate the need for chronic, systemic immunosuppression. In May, 2022, Sernova and Evotec entered into a global strategic partnership to develop an implantable off-the-shelf iPSC-based (induced pluripotent stem cells) islet replacement therapy. This partnership provides Sernova a potentially unlimited supply of insulin-producing cells to treat millions of patients with insulin-dependent diabetes (Type 1 and Type 2). Sernova continues to progress two additional development programs that utilize its Cell Pouch system: a cell therapy for hypothyroid disease resulting from thyroid gland removal and an ex vivo lentiviral factor VIII gene therapy for hemophilia A.

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