Sernova Announces Full Exercise of Share Purchase Warrants Expiring September 22, 2022

Rhea-AI Summary

Sernova Corp. announced the successful exercise of all remaining share purchase warrants from a 2020 private placement, resulting in an additional $3.5 million raised. This capital will support the continued development of the Cell Pouch System for treating chronic diseases, including diabetes and hemophilia A. Dr. Philip Toleikis, President and CEO, emphasized this as a strong indicator of shareholder confidence in the company's fundamentals. Sernova now holds its strongest cash position to date, enhancing its capacity to progress in clinical studies aimed at functional cures.

Positive

• Raised $3.5 million through the exercise of warrants, bolstering financial resources for development.
• Strong shareholder confidence indicated by the full exercise of warrants.
• Company in strongest cash position ever, facilitating ongoing clinical studies and operational needs.

Negative

• None.

Additional $3.5M of capital raised from exercise of expiring warrants

LONDON, Ontario, Sept. 22, 2022 (GLOBE NEWSWIRE) -- Sernova Corp. (TSX:SVA) (OTCQB:SEOVF) (FSE / XETRA:PSH), a clinical-stage company and leader in regenerative cell therapeutics, today announced that all remaining share purchase warrants related to the 2020 private placement, expiring on September 22, 2022, have been exercised with additional proceeds of $3.5M received since the Company’s last update on September 1, 2022. Capital raised through the exercise of these warrants will be directed to continued development of the Cell Pouch System^TM and its application to ‘functional cures’ for diabetes, hypothyroidism and hemophilia A, as well as for general working capital purposes.

“We believe the full exercise of all share purchase warrants with multiple expiry dates over the last two months is a strong indication of shareholders’ belief and confidence in Sernova’s fundamentals and the future potential of our Cell Pouch System,” commented Dr. Philip Toleikis, President and CEO of Sernova Corp. “Sernova is now in the strongest cash position it has ever been in.”

ABOUT SERNOVA CORP. AND THE CELL POUCH SYSTEM™ PLATFORM FOR CELL THERAPY

Sernova Corp. is a clinical-stage biotechnology company that is developing regenerative cell therapeutic technologies for chronic diseases, including insulin-dependent diabetes, thyroid disease, and blood disorders including 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 necessary proteins or factors missing from the body to treat chronic diseases. Sernova’s Cell Pouch System has already shown it can potentially provide a ‘functional cure’ to people with type 1 diabetes in an ongoing 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 cloak the therapeutic cells from the immune system attack with the goal to eliminate the need for chronic immunosuppressives. 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) beta cell 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 is also in development of two additional programs that utilize its Cell Pouch System – an implantable cell therapy for benign thyroid disease resulting from thyroid gland removal and an ex-vivo lentiviral Factor VIII gene therapy for hemophilia A.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Corporate:
Christopher Barnes
VP, Investor Relations
Sernova Corp.
christopher.barnes@sernova.com
519-902-7923
www.sernova.com

Investors:
Corey Davis, Ph.D.
LifeSci Advisors, LLC
cdavis@lifesciadvisors.com
212-915-2577

Media:
Elizabeth Miller, M.D.
LifeSci Communications
emiller@lifescicomms.com
646-791-9705

FORWARD-LOOKING INFORMATION

This release contains statements that, to the extent they are not recitations of historical facts, may constitute “forward-looking statements” that involve various risks, uncertainties, and assumptions, including, without limitation, statements regarding the prospects, plans, and objectives of the company. Wherever possible, but not always, words such as "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential for" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur are used to identify forward-looking statements. These statements reflect management’s beliefs with respect to future events and are based on information currently available to management on the date such statements were made. Many factors could cause Sernova’s actual results, performances or achievements to not be as anticipated, estimated or intended or to differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such factors could include, but are not limited to, the company’s ability to secure additional financing and licensing arrangements on reasonable terms, or at all; ability to conduct all required preclinical and clinical studies for the company’s Cell Pouch System and/or related technologies, including the timing and results of those trials; ability to obtain all necessary regulatory approvals, or on a timely basis; ability to in-license additional complementary technologies; ability to execute its business strategy and successfully compete in the market; and the inherent risks associated with the development of biotechnology combination products generally. Many of the factors are beyond our control, including those caused by, related to, or impacted by the novel coronavirus pandemic. Investors should consult the company’s quarterly and annual filings available on www.sedar.com for additional information on risks and uncertainties relating to the forward-looking statements. Sernova expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

FAQ

What recent funding did Sernova Corp. announce?

Sernova Corp. announced the raising of $3.5 million through the exercise of share purchase warrants.

How will Sernova use the $3.5 million raised?

The funds will be directed to the development of the Cell Pouch System and for general working capital.

What does the successful exercise of warrants indicate for Sernova?

It indicates strong shareholder confidence in Sernova's fundamentals and future potential.

When were the warrants exercised for additional capital?

The warrants were exercised leading to $3.5 million in capital on September 22, 2022.

What is the Cell Pouch System designed to treat?

The Cell Pouch System is being developed as a 'functional cure' for diabetes, hypothyroidism, and hemophilia A.