Sernova Announces Non-Brokered Private Placement

LONDON, ONTARIO–(Marketwired – June 21, 2016) – Sernova Corp. (“Sernova” or the “Company”) (TSX VENTURE:SVA)(OTCQB:SEOVF)(FRANKFURT:PSH) announced today that it has arranged a non-brokered private placement for gross proceeds of $2,000,000. The private placement consists of 8,000,000 units (the “Units”) at a price of $0.25 per Unit.

Each Unit will consist of one common share and one common share purchase warrant, with each warrant exercisable into one share at a price of $0.35 per share for a 24 month exercise period, subject to abridgement of the exercise period. Abridgement may occur with 30 days’ notice to holders (after the expiry of the 4 month hold period) if the 20 day volume weighted price of SVA shares exceeds $0.50 per share.

Net proceeds from the private placement will be used to fund Sernova’s collaborations utilizing our Cell Pouch System platform technologies to treat diabetes and other serious disease conditions, as well as to support a US-based Phase I/II diabetes clinical trial anticipated to commence in the second half of 2016, and for general corporate purposes.

All securities issued in connection with the private placement will be subject to a statutory hold period of four months. The Company will compensate finders on a portion of the private placement, such compensation consisting of 7% in cash or 7% in finder warrants, or a combination thereof.

Completion of the private placement is subject to the receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange.

About Sernova

Sernova Corp. is a clinical stage regenerative medicine Company developing medical technologies for the treatment of chronic debilitating metabolic diseases such as diabetes, blood disorders including hemophilia, and other diseases treated through replacement of proteins or hormones missing or in short supply within the body. Sernova is developing the Cell Pouch System™, an implantable medical device and therapeutic cells (donor, xenogeneic or stem cell derived therapeutic cells), which then release proteins and/or hormones as required.

Forward-Looking Information

This release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Sernova believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Forward-looking statements, are based on the beliefs, estimates and opinions of Sernova’s management on the date such statements were made, which include our belief that Sernova will be able to raise additional capital to fund its clinical programs. Sernova expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.