Sernova Receives $6.8 Million Evotec Second Tranche Equity Investment at $2.50 per Share

Sernova Corp.

LONDON, Ontario, Sept. 01, 2022 (GLOBE NEWSWIRE) — Sernova Corp. (TSX:SVA) (OTCQB:SEOVF) (FSE/ XETRA:PSH), a clinical-stage company and leader in regenerative medicine cell therapy, today announced that it has completed the second and final tranche of its previously announced private placement with Evotec SE (FSE:EVT) (NASDAQ:EVO) of 2,709,800 common shares of the Company (“Common Shares”) at a price of $2.50 per share for aggregate proceeds of $6,774,500. At the end of the second tranche, Evotec’s strategic investment in Sernova totals $27,098,000.

“Evotec’s investment at $2.50 per share, well over double yesterday’s closing price, reflects the value our strategic partner places on Sernova relative to the current TSX price,” commented the Dr. Philip Toleikis, President and CEO of Sernova Corp. “The dedication and synergy of our mutual teams to rapidly advance the iPSC diabetes program has been impressive. We remain convinced that our combination product strategy could have a significant impact on the daily lives of millions of people and their families worldwide with diabetes. With $50 million on our balance sheet, including the incremental investment from Evotec and recent significant warrant exercises underway, Sernova is well positioned to accelerate the advancement of our iPSC diabetes stem cell initiative with Evotec and other regenerative cell therapy programs that we believe will have significant uptake. impact.”

Sernova will use the net proceeds from the common shares for general working capital purposes and to continue researching “functional treatments” for diabetes, hypothyroidism and hemophilia A. The common shares are subject to a statutory hold period four months.

Update of mandates

In addition to Evotec’s private placement share issuances, 14,814,535 common shares have been issued for the exercise of warrants for proceeds totaling $4,493,587 since the end of the Company’s last filed fiscal quarter ( April 30, 2022). All warrants with expiry dates of August 16, August 30 and September 9, 2022 have been fully exercised by warrantholders. Of the previously issued warrants expiring on September 22, 2022, to date a total of 2,382,954 have been exercised by warrant holders. If the remaining outstanding warrants are fully exercised by September 22, 2022, additional proceeds of approximately $3.5 million will be received and will further strengthen the Company’s cash reserves.

ABOUT SERNOVA CORP. AND THE CELL POUCH SYSTEM™ PLATFORM FOR CELLULAR THERAPY

Sernova Corp. is a clinical-stage biotechnology company that develops regenerative medicine therapeutic technologies for chronic diseases, including diabetes, thyroid diseases and blood disorders, including hemophilia A. Sernova is currently focused on the development of a “functional cure” for diabetes with its regenerative cell therapy platform technologies, including its proprietary Cell Pouch™. Upon implantation, the Cell Pouch forms a natural vascularized tissue environment within the body for the long-term survival and functioning of therapeutic cells that release necessary proteins or missing factors from the body to treat chronic diseases. Sernova’s Cell Pouch System has already shown the potential to provide a “functional cure” for people with type 1 diabetes in an ongoing Phase 1/2 clinical study at the University of Chicago. Sernova is also advancing its proprietary conformal coating technology in collaboration with the University of Miami to mask therapeutic cells from immune system attack in an effort to eliminate the need for chronic immunosuppressants. In May 2022, Sernova and Evotec entered into a global strategic collaboration to develop a ready-to-use implantable beta cell replacement therapy based on iPSCs (induced pluripotent stem cells). This collaboration potentially provides Sernova with an unlimited supply of insulin-producing cells to treat millions of patients with insulin-dependent diabetes (type 1 and type 2). Sernova is also preparing to be in the clinic in two additional programs that utilize its Cell Pouch System – an implantable cell therapy for benign thyroid disease resulting from thyroid gland removal and an ex vivo lentiviral factor VIII gene therapy for thyroid disease. hemophilia A.

FOR MORE INFORMATION, PLEASE CONTACT:

Company :
Christopher Barnes
Vice President, Investor Relations
Sernova Corp.
[email protected]
519-902-7923
www.sernova.com

Investors:
Corey Davis, Ph.D.
LifeSci Advisors, LLC
[email protected]
212-915-2577

Media:
Elizabeth Miller, MD
LifeSci Communications
[email protected]
646-791-9705

FORWARD-LOOKING INFORMATION

This release contains statements which, to the extent that they are not recitals of historical fact, may constitute “forward-looking statements” that involve various risks, uncertainties and assumptions, including, without limitation, statements regarding prospects, plans and objectives of the company. Whenever possible, but not always, words such as “anticipates”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “could”, “might” or “should” occur are used to identify forward-looking statements. These statements reflect management’s beliefs regarding future events and are based on information currently available to management as of the date such statements were made. Many factors could cause Sernova’s actual results, performance or achievements not to be those intended, estimated or intended or to differ materially from those expressed or implied by the forward-looking statements contained in this press release. These factors could include, but are not limited to, the company’s ability to obtain additional financing and license agreements on reasonable terms, if at all; ability to conduct all preclinical and clinical studies required for the Company’s Cell Pouch System and/or related technologies, including the timing and results of such trials; ability to obtain all necessary or timely regulatory approvals; the ability to license additional complementary technologies; its ability to implement its business strategy and compete successfully in the marketplace; and the inherent risks associated with the development of combination biotechnology products generally. Many factors are beyond our control, including those caused by, related to, or impacted by the novel coronavirus pandemic. Investors are encouraged to consult the Company’s quarterly and annual filings available at www.sedar.com for additional information on the risks and uncertainties associated with forward-looking statements. Sernova expressly disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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