Mr. Dominic Gray reports

SERNOVA COMPLETES OVERSUBSCRIBED PRIVATE PLACEMENT OF $4,684,564

Sernova Corp. has completed a non-brokered private placement of $4,684,564, pursuant to which Sernova issued a total of 23,422,822 units in three closings (Aug. 16, 2019, Aug. 30, 2019, and Sept. 9, 2019).

Net proceeds from 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, "Safety, Tolerability and Efficacy Study of Sernova's Cell Pouch for Clinical Islet Transplantation," and to advance internal preclinical development programs and corporate/academic collaborations utilizing the company's platform technologies to treat diabetes, hemophilia and other serious disease conditions, as well as for investor relations and general corporate purposes.

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 private placement has received approval of the TSX Venture Exchange. Pursuant to applicable Canadian securities laws, the securities issued under the private placement are subject to a four-month hold period from the time of closing of the private placement. The hold periods for this private placement expire on Dec. 17, 2019, Dec. 31, 2019, and Jan. 10, 2020.

The company compensated finders by way of cash fees of $78,225 and 391,125 non-transferable finders' warrants, each such finder warrant having the same terms as the unit warrants.

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.

A sentinel pouch is removed for an early assessment of the islet transplant. Subjects will be followed for additional safety and efficacy measures for approximately six months. At this point, a decision will be made with regard to the transplant of a second islet dose with subsequent safety and efficacy follow-up. Patients will then be further followed for one year. The primary objective of the study is to demonstrate safety and tolerability of islet transplantation into the Cell Pouch. The secondary objective is to assess efficacy through a series of defined measures.

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.

We seek Safe Harbor.