Sernova Corp
TSX VENTURE : SVA

Sernova Corp

April 03, 2012 06:00 ET

Sernova Completes $3.6M Non-Brokered Private Placement

LONDON, ONTARIO--(Marketwire - April 3, 2012) -

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Sernova Corp. ("Sernova" or the "Company") (TSX VENTURE:SVA) today announced that it has completed the non-brokered private placement (the "Offering"), previously announced on February 12, 2012, and the over subscription of which was announced on February 28, 2012, for a total of 20,167,332 units of the Company (the "Units") at a price of $0.18 per Unit, raising approximately $3,630,120 in gross proceeds.

"We plan to utilize the proceeds from this private placement to initiate the first-in-world clinical study of the Cell Pouch™ in patients with diabetes who are undergoing transplantation of insulin producing islets, pending approval by Health Canada," said Dr. Philip Toleikis, President and CEO of Sernova. "Dr. James Shapiro will act as the principal investigator of this study at the University of Alberta in Edmonton."

The Company completed the Offering in two tranches - 772,222 Units were issued in the second tranche on March 30, 2012 and 19,395,110 Units were issued in the first tranche on February 28, 2012.

Each Unit consists of one common share of the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to purchase one Share (a "Warrant Share") for a period of three years, at a price of $0.20 per Warrant Share in the first year and at a price of $0.35 per Warrant Share in the second and third years.

The proceeds from the Offering will be used by Sernova for research and development of its proprietary Cell Pouch System™, and, in particular, to fund the upcoming first-in-man clinical trial for patients with diabetes receiving an islet transplant, and for general and administrative expenses.

All securities issued in connection with this second tranche of the Offering are subject to a statutory hold period of four month plus one day from the date of completion of the first tranche of the Offering, expiring July 31, 2012, in accordance with applicable securities legislation.

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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