Sernova Corp

TSX VENTURE : SVA


Sernova Corp

October 18, 2010 06:00 ET

Sernova Corp. Announces Private Placement and $570,000 First Closing

LONDON, ONTARIO--(Marketwire - Oct. 18, 2010) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Sernova Corp. ("Sernova" or the "Company") (TSX VENTURE:SVA) is pleased to announce that it is offering on a non-brokered private placement basis up to 5.0 million units (the "Units") at a price of $0.15 per Unit to raise proceeds up to $750,000. The Company completed a first closing in the amount of $570,000 on October 15, 2010.

Proceeds of the offering will be used to fund ongoing development of Sernova's proprietary Cell Pouch System™, including pre-clinical studies required by regulatory authorities to support a future Phase I/II human clinical study of insulin-dependent diabetes, and for general working capital.

Each of the Units consists of one common share of the Company (a "Share") and one-half share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder thereof to acquire one Share at a price of $0.20 for a period of 24 months from closing. In connection with the placement, the Company may pay cash fees or issue warrants (having the same terms as the Warrants) to finders in accordance with the policies of the TSX Venture Exchange.

In the first closing, the Company issued 3,800,000 Units and 37,333 finder warrants and paid $2,800 to finders.

The terms of the private placement are subject to final acceptance by the TSX Venture Exchange. All of the securities issued in connection with a closing of the private placement will be subject to resale restrictions, including a four month hold period.

About Sernova

Sernova Corp. is a Canadian-based, health-sciences company focused on commercializing medical technologies. Sernova is currently developing a platform technology for a number of serious disease indications, starting with a novel treatment for insulin-dependent diabetes, using the novel Cell Pouch System™ and its patented Sertolin™ cell technology. According to the American Diabetes Association approximately 9 million Americans require insulin injections and it is the sixth leading cause of death in the United States. One out of every 8 dollars spent on health care in the United States is spent on treating diabetes and its complications. Worldwide expenditures on insulin alone are estimated to be $15 billion annually and growing.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including availability of funds, the results of financing efforts, the results of research and product development activities -- that could cause actual results to differ materially from Sernova's expectations are disclosed in Sernova's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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