Sernova Biotherapeutics Announces Close of Non-Brokered Private Placement Financing

Executive Summary

• Sernova Biotherapeutics closed a non‑brokered private placement raising $2.1 million in gross proceeds.
• The offering consisted of 13,762,659 units at $0.15 per unit, each unit containing one common share and one warrant exercisable at $0.25 for 36 months.
• Proceeds, together with a $5.5 million commitment from a board member and the anticipated retirement of roughly $17 million of debt, are intended to strengthen the balance sheet and fund advancement of the Cell Pouch Bio‑hybrid Organ clinical program for type 1 diabetes.

Key Details

• Units Issued: 13,762,659
• Price per Unit: $0.15 (total gross proceeds $2.1 M)
• Unit Composition: 1 common share + 1 common share purchase warrant (exercise price $0.25, term 36 months, acceleration provisions apply)
• Holding Period: 4‑month hold period under Canadian securities laws
• Use of Proceeds: Bolster balance sheet; fund clinical development of Cell Pouch Bio‑hybrid Organ for T1D; support debt retirement plans.
• Additional Funding Commitment: $5.5 million pledged by a board member.
• Debt Retirement Expectation: Approximately $17 million to be retired in the near term.

Notable Quotes

“This financing, combined with $5.5 million committed by one of our board members and the expected near‑term retirement of approximately $17 million of debt, significantly strengthens our balance sheet and enables our plans to advance our Cell Pouch Bio‑hybrid Organ clinical program with the mission to develop a functional cure for type 1 diabetes,” – Jonathan Rigby, Chief Executive Officer.