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Sernova Biotherapeutics (TSX: SVA) (OTC: SEOVF) (FSE: PSH) ("Sernova or the Company)") a leading regenerative medicine company focused on developing its Cell Pouch Bio-hybrid Organ as a functional cure for type 1 diabetes (T1D), today announced the closing of the first tranche of a private placement totaling CAD $874,600 in gross proceeds from existing and new investors. The Company aims to raise up to $5M CAD with the proceeds being used to support the advancement of its clinical program in T1D.
Under the terms of the financing, Sernova issued 5,466,250 units at $0.16 per unit. Each unit consists of one common share and one warrant with an exercise price of $0.40, exercisable for 36 months. The funds raised will be used for general operating capital, and the launch of the final Cohort C in the Company's ongoing Phase 1/2 clinical trial evaluating its proprietary Cell Pouch Bio-hybrid Organ for the treatment of type 1 diabetes. Sernova plans to incorporate tegoprubart, a novel investigational immunomodulatory antibody, in place of the current standard of care tacrolimus, as part of the final Cohort C. The Company and its advisors, anticipate improved clinical outcomes given positive clinical data on tegoprubart versus tacrolimus with respect to insulin producing islet cell engraftment, survival and function in patients with T1D.
In addition to the equity financing, Sernova is pursuing non-dilutive funding, which the Company believes it will secure to further support the clinical program.
"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," said Jonathan Rigby, CEO of Sernova. "With the launch of Cohort C, which will incorporate tegoprubart, we are building on promising clinical results to further optimize patient outcomes and move closer to a functional cure for insulin-dependent diabetes."
All securities issued in connection with the private placement will be subject to a statutory hold period of four months. Completion of the private placement is subject to customary closing conditions, including acceptance of the TSX.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
ABOUT Sernova Biotherapeutics
Sernova Biotherapeutics is a clinical-stage company developing regenerative medicine therapeutics combining its Cell Pouch with human donor cells or stem-cell derived islet-like clusters in collaboration with Evotec to create bio-hybrid organs to treat T1D. A bio-hybrid organ is comprised of non-biomaterials, such as the Cell Pouch, integrated with living tissues to restore or enhance the function of a compromised organ. This innovative approach aims to deliver a potentially revolutionary treatment for patients with chronic diseases, initially focusing on T1D and thyroid disorders.
FOR FURTHER INFORMATION ABOUT THE OPEN PRIVATE PLACEMENT, PLEASE CONTACT:
David Burke VP, Investor Relations (917) 751-5713
Email: David.Burke@sernova.com
Website: https://sernova.com/
The TSX has not reviewed this news release and does not accept responsibility for the accuracy or adequacy of this news release.
FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements within the meaning of applicable Canadian securities laws. Forward-looking statements in this press release include our expectation to timely obtain all necessary approvals, including TSX acceptance, and our expectation of raising sufficient funding to initiate Cohort C. With respect to the forward-looking statements contained in this press release, Sernova has made numerous assumptions regarding, among other things: the company's ability to secure additional financing on reasonable terms, or at all; and the ability to conduct all required preclinical and clinical studies for the company's Cell Pouch, including the timing and results of those trials. A more complete discussion of the risks and uncertainties facing Sernova appears in Sernova's Annual Information Form for the year ended October 31, 2024, filed with Canadian securities authorities and available at www.sedarplus.ca, as updated by Sernova's continuous disclosure filings, which are available at www.sedarplus.ca. All forward-looking statements herein are qualified in their entirety by this cautionary statement, and Sernova disclaims any obligation to revise or update any such forward-looking statements or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments, except as required by law.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/274250
