Sernova Corp

Sernova Corp

November 02, 2009 06:00 ET

Sernova Closes First Tranche of Private Placement and Announces Appointment of Dr. Annemarie Moseley to Board of Directors

LONDON, ONTARIO--(Marketwire - Nov. 2, 2009) - Sernova Corp. ("Sernova" or the "Company") (TSX VENTURE:SVA) announces that it has closed the first tranche of the non-brokered private placement announced October 7, 2009 on October 30, 2009. In this first tranche, the Company has raised gross proceeds of $365,000 through the issuance of 3,650,000 units. Each common share unit (the "Unit") consists of one common share (a "Share") and one share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one Share in Sernova for a period of two years from closing.

Proceeds of the offering will be used to fund product development activities related to Sernova's proprietary Cell Pouch System™. The Cell Pouch System™ is a chambered device which becomes a vascularised organ-like structure when placed in the body and provides the microcirculation essential to early function and long-term survival of cells and represents a potential revolutionary improvement over the current practise of injecting therapeutic cells into blood vessels. Sernova's first application of the Cell Pouch System™ is in insulin-dependent diabetes and is expected to reduce the blood-mediated inflammatory reaction (IBMIR) believed to rapidly destroy over 90% of implanted islets placed into the portal vein and eliminate islet-induced blood clotting and liver thrombosis which are drawbacks to the current standard of care.

The company also announced a change in appointment of Dr. Annemarie Moseley from the Business Advisory Board to the Board of Directors, and a change in appointment of Mr. Devindar Randhawa from the Board of Directors to the Business Advisory Board.

Dr. George Adams, Sernova's Chairman said, "Dr Moseley is a well-seasoned senior executive with extensive experience in cell-based product development, clinical and regulatory affairs as well as financing and partnering." He further stated, "Dev Randhawa has contributed to Sernova's overall development since joining the Board in March, 2005. We are pleased that he will continue to act in an advisory capacity as a member of Sernova's Business Advisory Board."

The appointment of Dr. Moseley is subject to regulatory approval.

Further to the Company's news release of October 7, 2009, the Non-Brokered Offering was re-priced from $0.15 per Unit to $0.10 per Unit, which resulted in an increase in offered Units from up to 6.6 million Units to up to 10 million Units, with each Unit consisting of one Share and one Warrant. The exercise price for each whole Warrant was re-priced from $0.25 to $0.20.

A total of $18,592 was paid to finders in connection with the Non-Brokered Offering in the amount of $9,600 to Canaccord Capital Corp. ("Canaccord") and $8,992 to Blackmont Capital Inc. ("Blackmont"). Each cash payment represents 8% of the total dollar value of Units subscribed for by investors introduced to the Company by Canaccord and Blackmont, respectively. The Company also paid for certain expenses of Canaccord in relation to the Non-Brokered Offering. All of the securities issued in connection with the private placement are subject to four month hold periods that expire on March 1, 2010.

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 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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