Sernova Biotherapeutics Closes First Tranche of a Private Placement of Equity Financing to Support Ongoing Clinical Efforts

Executive Summary

• Sernova Biotherapeutics closed the first tranche of a private placement, raising CAD $874,600 in gross proceeds.
• The financing consisted of 5,466,250 units at $0.16 per unit; each unit includes one common share and one warrant (exercise price $0.40, exercisable for 36 months).
• Proceeds will fund general operating capital and the launch of Cohort C in the Phase 1/2 T1D clinical trial, which will incorporate the investigational antibody tegoprubart.

Key Details

• Financing Structure: 5,466,250 units @ $0.16 per unit = CAD $874,600 gross proceeds.
• Unit Composition: 1 common share + 1 warrant (exercise price $0.40, 36‑month term).
• Use of Proceeds: General operating capital; launch of final Cohort C in Phase 1/2 trial for type 1 diabetes.
• Clinical Update: Cohort C will replace tacrolimus with tegoprubart, an investigational immunomodulatory antibody expected to improve islet cell engraftment, survival, and function.
• Funding Goal: Company aims to raise up to CAD $5 million through this private placement series.
• Future Funding Plans: Pursuing additional non‑dilutive funding sources; expects subsequent tranches and conversion of CAD $13.8 million legacy debt to equity.
• Statutory Hold Period: All securities subject to a four‑month hold period.
• Closing Conditions: Completion subject to customary conditions, including TSX acceptance.

Notable Quotes

“This financing, and the anticipated subsequent tranches, plus a further increase in the previously announced settlement conversion of CAD $13.8 Million of legacy debt to equity significantly strengthens our balance sheet as we enter an exciting new phase of clinical development,” – Jonathan Rigby, CEO, Sernova Biotherapeutics.

Materiality Assessment: Material – Positive (significant capital raise supporting a key clinical trial milestone).