07:06:07 EDT Wed 08 Jul 2020
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Sernova closes $2.33-million first tranche of financing

2019-08-19 10:23 ET - News Release

Mr. Dominic Gray reports


Sernova Corp. has completed a first closing of $2,333,500 of its non-brokered private placement (which was announced on July 25, 2019), of which $64,000 was closed under the "existing shareholder exemption."

In addition, the company has increased the maximum offering by an additional $500,000 for a total offering of $3.5-million of units. Each unit in the offering is priced at 20 cents per unit and consists of one common share and one common share purchase warrant. Each warrant will be exercisable into one share at a price of 30 cents per share for a period of 36 months.

The company plans to close the balance of the placement in the coming weeks.

Net proceeds from the increased portion of the private placement will be used to support financing of Sernova's clinical program, including its FDA-cleared (Food and Drug Administration) U.S. phase 1/2 regenerative medicine clinical trial, and to advance corporate/academic collaborations utilizing the company's platform technology to treat diabetes, hemophilia and other serious disease conditions, as well as for investor relations and general corporate purposes.

Completion of the private placement is subject to the approval of the TSX Venture Exchange. All securities issued in connection with the private placement will be subject to a statutory hold period of four months.

About Sernova's U.S. clinical study

The approved protocol is a phase 1/2 non-randomized, unblinded, single-arm, company-sponsored trial, where diabetic subjects with hypoglycemia unawareness enroll into the study. Participants are then implanted with Cell Pouches. Following the development of vascularized tissue chambers within the Cell Pouch, subjects are then stabilized on immunosuppression, and a dose of purified islets, under strict release criteria, is transplanted into the Cell Pouch.

About Sernova Corp.

Sernova is developing regenerative medicine therapeutic technologies using a medical device and immune-protected therapeutic cells to improve the treatment and quality of life of people with chronic metabolic diseases, such as insulin-dependent diabetes, blood disorders, including hemophilia, and other diseases treated through replacement of proteins or hormones missing or in short supply within the body.

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