Sernova Biotherapeutics Strengthens Balance Sheet with $7.1 Million in Financings Plus Net Retirement of a Cumulative $17 Million of Debt Subject to Shareholder Approval

Executive Summary

• Sernova Biotherapeutics announced $7.1 million of financing to strengthen its balance sheet.
• The financing consists of three transactions: a $1.6 M equity private placement, a $1.5 M convertible debenture from an insider/director, and a $4.0 M equity financing from an insider/director pending shareholder approval.
• Proceeds will be used to retire the company’s existing $4.0 M secured term loan and improve capital structure, with an expected net retirement of approximately $17 M of debt upon AGM approval.

Key Details

• Equity Private Placement: $1.6 M at $0.15 per unit; each unit = 1 common share + 1 warrant (exercise price $0.25, 36‑month term). Closing expected March 6 2026.
• Convertible Debenture: $1.5 M from an insider/director; interest 10% per annum; convertible at $0.15 per share; issued with 10,000,000 warrants (exercise price $0.25, 36‑month term). Funds advanced; closing upon TSX acceptance.
• Insider Equity Financing: $4.0 M consisting of 26,666,667 units at $0.15 per unit; each unit = 1 common share + 1 warrant (exercise price $0.20, 36‑month term). Closing subject to shareholder approval at the AGM on April 8 2026.
• Use of Proceeds: $4.0 M financing earmarked to retire the existing $4.0 M secured term loan maturing April 16 2026 (subject to AGM approval). Remaining proceeds bolster liquidity and support clinical program advancement.
• Related Party Considerations: Transactions qualify as related‑party under MI 61‑101; company relying on exemptions or will seek disinterested shareholder approvals. Directors abstained where applicable. Securities subject to a four‑month hold period under Canadian law.
• Historical Funding Context: Including ~ $900 k raised in a November 2025 private placement, Sernova has secured > $4.0 M in private placements over the past five months.

Notable Quotes

“Over the past year, we have taken decisive steps to stabilize and strengthen our foundation from a financial, management and board and partner perspective,” said Jonathan Rigby, CEO.
“With these financings plus the expected net retirement of approximately $17 million of debt upon shareholder approval at our AGM, we believe Sernova is entering a period of renewed financial health.”