Sernova closes $2.1-million private placement

Executive Summary

• Sernova Biotherapeutics Inc. has closed a non-brokered private placement financing, securing total gross proceeds of $2.1 million.
• The company issued 13,762,659 units at a price of 15 cents per unit, with each unit comprising one common share and one common share purchase warrant.
• The financing strengthens the balance sheet, complementing $5.5 million in committed board member funding and the expected near-term retirement of approximately $17 million of debt, to advance the cell pouch biohybrid organ clinical program for Type 1 diabetes.

Key Details

• Gross Proceeds: $2.1 million.
• Units Issued: 13,762,659 units.
• Price Per Unit: $0.15 CAD.
• Warrant Terms: Each unit includes one common share purchase warrant exercisable at $0.25 per share for a period of 36 months, subject to acceleration provisions.
• Hold Period: Securities are subject to a four-month hold period under applicable Canadian securities laws.
• Strategic Context: The financing is combined with $5.5 million committed by a board member and the expected near-term retirement of ~$17 million in debt to support the development of a functional cure for Type 1 diabetes using biohybrid organs.

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 biohybrid organ clinical program with the mission to develop a functional cure for Type 1 diabetes," commented Sernova chief executive officer Jonathan Rigby.