Mr. Jonathan Rigby reports

SERNOVA ANNOUNCES UP TO $4 MILLION PRIVATE PLACEMENT PRICED AT A PREMIUM

Sernova Corp. has secured over $2-million in lead orders in connection with a non-brokered private placement offering for up to $4-million units priced at a premium to the market.

Each unit is priced at 25 cents and consists of one common share and one warrant. Each warrant is priced at 30 cents per share and is exercisable for a period of 18 months, subject to Sernova's option to shorten the exercise period if the 20-day volume-weighted average price of the company's shares exceeds 50 cents.

The net proceeds from the private placement will be used: to continue enrolment in the company's United States-based phase I/II Type 1 diabetes clinical trial; to advance an IND (investigational new drug) filing for its postoperative hypothyroidism program; and for general corporate purposes.

Newly appointed Sernova chief executive officer Jonathan Rigby stated: "We are pleased to announce a financing round led by legacy investors with insider participation. Our goal is to secure sufficient capital to maintain ongoing clinical initiatives. The company recently announced that data from its ongoing clinical trial of its Cell Pouch technology containing donor islet cells to treat Type 1 diabetes will be presented at the European Association for the Study of Diabetes (EASD), Sept. 9 to Sept. 13 in Madrid, Spain."

All securities issued in connection with the private placement will be subject to a statutory hold period of four months. The completion of the private placement is subject to customary closing conditions, including the acceptance of the Toronto Stock Exchange. The private placement is expected to close prior to Aug. 28, 2024.

The company expects insider participation in the offering, which may be considered a related party transaction within the meaning of Multilateral Instrument 61-101. Sernova intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of any insider participation.

About Sernova Corp.

Sernova is a clinical-stage biotechnology company that is developing therapeutic cell technologies for chronic diseases, including insulin-dependent diabetes and thyroid disease. Sernova is currently focused on developing a "functional cure" for insulin-dependent diabetes with its lead technology, 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, allowing long-term survival and function of therapeutic cells that release essential factors that are absent or deficient in patients with certain chronic diseases. Sernova's Cell Pouch has demonstrated its potential to be a functional cure for people with Type 1 diabetes in a continuing phase 1/2 clinical study at the University of Chicago.

Sernova partnered with Evotec to develop an implantable, off-the-shelf, iPSC-based (induced pluripotent stem cell) 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's development pipeline that uses its Cell Pouch system also includes: (i) a cell therapy for hypothyroid disease resulting from thyroid gland removal; and (ii) an ex vivo lentiviral Factor VIII gene therapy for hemophilia A.

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