Sernova Corp

TSX VENTURE : SVA


Sernova Corp

June 24, 2011 12:52 ET

Sernova Announces Closing of $1 Million Brokered Private Placement and Provides Corporate Update

LONDON, ONTARIO--(Marketwire - June 24, 2011) -

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 the closing of its brokered private placement announced May 10, 2011. 5,337,914 units of the Company ("Units") were placed at a price of $0.19 per Unit for gross proceeds of approximately $1,014,200 (the "Offering"). Each Unit will consist of one common share of the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to purchase one Share for a period of two years, at a price of $0.20 per Share in the first year and at a price of $0.35 per Share in the second year.

Macquarie Private Wealth Inc. (the "Agent") acted as agent in connection with the Offering. The Agent received a commission of $29,693.20, representing 8% of the gross proceeds raised on subscribers introduced to the Offering by the Agent ("Non-President's List Subscribers", with all other subscribers being "President's List Subscribers") and 6% of the gross proceeds from two President's List Subscribers (the "President's List Commission"), a corporate finance fee of $25,000 (plus applicable taxes), and broker warrants (the "Broker Warrants") to acquire 195,950 Shares, being 10% of the Units sold under the Offering to Non-President's List Subscribers. Each Broker Warrant will be exercisable at $0.19 per Share for a period of 18 months following the closing. 3,474,414 Units were issued to President's List Subscribers and the Agent did not take any commission or Broker Warrants with respect to the President's List Subscribers, with the exception of the above-mentioned President's List Commission.

The proceeds from the Offering will be used by Sernova for further development of the Cell Pouch™ for safety and efficacy evaluation in diabetic patients receiving donor islets. Proceeds will also be used in part for potential university and corporate collaborations, additional preclinical studies and general and administrative activities.

All securities issued under the private placement will be subject to a four month hold period, expiring October 24, 2011, during which time the securities may not be traded.

Sernova also wishes to announce the resignation of Dr. Annemarie Moseley from the Board of Directors. Dr. George Adams, Chair of Sernova's Board stated, "The company has greatly benefited from Dr. Moseley's excellent council and wishes her well in her future endeavours as she focuses on her stem cell company."

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.

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. 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.

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.

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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