Sernova Corp
TSX VENTURE : SVA
OTCQB : SEOVF
FRANKFURT : PSH

Sernova Corp

June 27, 2016 06:00 ET

Sernova Announces $2,000,000 First Closing of Private Placement

Due to Oversubscription, Offering Increased to $3,750,000

LONDON, ONTARIO--(Marketwired - June 27, 2016) - Sernova Corp. ("Sernova" or the "Company") (TSX VENTURE:SVA)(OTCQB:SEOVF)(FRANKFURT:PSH) is pleased to announce that it is closing today $2,000,000 of its non-brokered private placement announced on June 21, 2016. In addition, as the Company has received over-subscriptions of $1,650,000, it is increasing the total amount of the non-brokered private placement offering to $3,750,000 for a total offering of 15,000,000 units (the "Units") at $0.25 per Unit. The Company plans to close the balance of the placement, Thursday, June 30th, 2016.

"We are pleased with the very strong interest from investors in Sernova's future in the regenerative medicine space as indicated by the oversubscription of the private placement," said Dr. Philip Toleikis, President and CEO of Sernova.

Net proceeds from the private placement will be used to fund Sernova's regenerative medicine clinical program and collaborations utilizing the Company's platform technology to treat diabetes and other serious disease conditions, as well as for general corporate purposes.

In the first closing today, Sernova will issue 8,000,000 Units at $0.25 per Unit for gross proceeds of $2,000,000. Each Unit to be issued 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 (after the expiry of the 4 month hold period) on 30 days notice to holders in the event that the twenty-day volume weighted price of the shares exceeds $0.50.

Also, in respect of the first closing, the Company expects to compensate finders by way of cash fees of $132,912.50 and 531,650 non-transferable finder warrants, each such finder warrant having the same terms as the Unit warrants. The Company may also compensate finders on a portion of the increased private placement consisting of 7% in cash and 7% in finder warrants, or a combination thereof.

Completion of the $3,750,000 private placement is subject to the receipt of the approval of the TSX Venture Exchange. All securities issued in connection with the private placement will be subject to a statutory hold period of four months.

This news release does not constitute an offer to sell or the 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 U.S. Securities Act of 1933 or any state securities laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act of 1933 and all applicable state securities laws, or an applicable exemption from registration requirements.

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, which include our beliefs about the functionality of the Cell Pouch System™ and our cell technologies, are based on the beliefs, estimates and opinions of Sernova's management on the date such statements were made. 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.

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