Sernova Corp.

TSX VENTURE : SVA


Sernova Corp.

January 21, 2013 06:00 ET

Sernova Announces Non-Brokered Private Placement

LONDON, ONTARIO--(Marketwire - Jan. 21, 2013) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Sernova Corp. ("Sernova" or the "Company") (TSX VENTURE:SVA) has arranged a non-brokered private placement in the amount of CDN$2.0M (the "Offering"). The Offering will consist of 10.0M units (the "Units") each sold at price of $0.20 per Unit.

"This private placement is a further indication of increased investor interest in our technology and the potential of the Cell Pouch System™," said Dr. Philip Toleikis, President and CEO of Sernova Corp. "Net proceeds from the Offering will be used to fund Sernova's research studies utilizing our platform technology to treat diabetes and other serious disease conditions, as well as for general corporate purposes."

Each Unit will consist of one common share and one common share purchase warrant (a "Warrant"), with each Warrant entitling the holder thereof to purchase one common share of the Company (a "Warrant Share") for a period of 36 months from the closing of the Offering (the "Exercise Period") at a price of $0.35 per Warrant Share for the first 24 months of the Exercise Period and at a price of $0.40 per Warrant Share for the last 12 months of the Exercise Period.

All securities issued in connection with the Offering will be subject to a statutory hold period of four months from the date of issuance in accordance with applicable securities law legislation. The Company may pay a finder's fee on the Offering of 7% in cash, warrants, or a combination thereof.

The Offering is subject to a number of conditions including receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange.

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 Cell Pouch System™, a medical device for transplantation and long-term support of therapeutic cells and its patented Sertolin™ cell technology which provides local immune protection of therapeutic cells.

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.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any of the Shares in the United States. The Shares 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.

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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