Mr. Jonathan Rigby reports

SERNOVA AND SERAXIS CLOSE US$11.2 MILLION FINANCING TO FUND MERGER TO BECOME BETANOVA BIOTHERAPEUTICS AND ADVANCE TYPE 1 DIABETES CELL THERAPY INTO NEAR TERM PHASE 1/2 CLINICAL TRIAL

Sernova Biotherapeutics Inc. and Seraxis Holdings Inc. have closed the previously announced targeted $10-million (U.S.) non-brokered convertible note financing in connection with their proposed merger to form BetaNova Biotherapeutics Inc.

The $11.2-million (U.S.) financing into Seraxis includes participation from insiders Dr. Steven Sangha/Arlo Investments, Sernova management Jonathan Rigby (chief executive officer), James Parsons (chief financial officer), Marylyn Rigby (chief commercial officer) and David Burke (vice-president, investor relations), as well as Seraxis management Dr. Will Rust (CEO) and Dr. Carole Welsch (chief operating officer). Existing shareholders and new investors also participated in the financing.

Proceeds from the financing are expected to support:

• cGMP (current good manufacturing practice) manufacturing of SR-02, allogeneic stem cell-derived pancreatic islet cells;
• Enrolment of patients with T1D (Type 1 diabetes) in Q4 for phase 1/2 clinical trial;
• First patient dosing of SR-02 in phase 1/2 clinical trial in Q1 2027 under an FDA-cleared (U.S. Food and Drug Administration) IND (investigational new drug), with initial clinical data anticipated in the first half of 2027;
• Nasdaq listing readiness targeted for Q1 2027, subject to satisfaction of applicable listing requirements and approvals;
• Advancement of SR-03, the next-generation gene-edited pancreatic islet cell program targeting immune evasion, toward an IND submission in the second half of 2027.

"This financing puts capital directly behind the milestones we have outlined for BetaNova as we passionately advance towards a potential functional cure for people living with T1D," said Mr. Rigby, president and chief executive officer of Sernova. "With the financing now closed, we believe BetaNova is positioned to successfully compete with other companies in the T1D cell therapy space by entering the clinic in the near term. Our focus is on execution while deploying capital efficiently."

"Closing the financing provides the resources to advance the manufacturing activities required to support SR-02 islet cells and prepare for initiation of the phase 1/2 clinical trial," said Dr. Rust, president and chief executive officer of Seraxis. "As we work toward completion of the merger, our teams are aligned around a shared mission, a clear development strategy, and a defined set of milestones for 2026 and 2027."

Proposed merger

Sernova and Seraxis entered into a definitive merger agreement on Sept. 7, 2026, to form BetaNova, combining Seraxis's stem cell-derived pancreatic islet programs and cGMP manufacturing capabilities with Sernova's Cell Pouch biohybrid organ. The completion of the merger is subject to required approvals and customary closing conditions. Upon completion, each of Sernova and Seraxis shareholders are expected to collectively own approximately 50 per cent of BetaNova on a non-diluted basis.

Noble Capital Markets Inc. is acting as exclusive financial adviser to Sernova in connection with the proposed merger.

About the financing

The $11.2-million (U.S.) financing consists of convertible notes and common stock purchase warrants of Seraxis issued on a non-brokered basis. Upon completion of the merger, the notes are expected to automatically convert into common stock of BetaNova.

About BetaNova Biotherapeutics Inc.

BetaNova Biotherapeutics is the proposed combined company of Sernova Biotherapeutics and Seraxis Holdings. Subject to completion of the proposed transaction, BetaNova will be a clinical-stage regenerative medicine company focused on advancing cell-replacement therapies for Type 1 diabetes. BetaNova will combine Seraxis's stem cell-derived islet cell and cGMP manufacturing platform with Sernova's Cell Pouch biohybrid organ.

About Sernova Biotherapeutics Inc.

Sernova Biotherapeutics is a clinical-stage company developing a regenerative medicine solution for T1D that combines its Cell Pouch implantation device, deep clinical experience in the engraftment of functional pancreatic cells and therapeutic cells to create a biohybrid, functional surrogate endocrine organ.

About Seraxis Holdings Inc.

Seraxis Holdings develops stem cell-derived pancreatic islets under cGMP manufacturing processes. Seraxis's mission is to demonstrate safety and potency of its islets in T1D patients without immune suppression therapy. To accomplish this goal, its lead allogeneic product, SR-02, is paired with an immune-tolerizing strategy. Seraxis's follow-on product, SR-03, adds gene edits to SR-02 that increase compatibility with the host and potentially enhance long-term engraftment without immune suppression.

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