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

Sernova Corp.

June 30, 2016 18:23 ET

Sernova Completes Private Placement of $4,200,000

LONDON, ONTARIO--(Marketwired - June 30, 2016) - Sernova Corp. ("Sernova" or the "Company") (TSX VENTURE:SVA)(OTCQB:SEOVF)(FRANKFURT:PSH) is pleased to announce that it has completed a non-brokered private placement of $4.2 million, pursuant to which Sernova issued a total of 16,800,000 units in two closing (June 27, 2016 and June 30, 2016).

Each unit issued in the private placement consists of one common share and one common share purchase warrant, and each warrant is 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 20-day volume weighted price of the shares exceeds $0.50.

The gross proceeds from the private placement will be used to fund a US-based clinical trial ($2.5 million is allocated) and to fund Sernova's research and development programs including corporate and academic collaborations ($1.2 million is allocated) utilizing its platform technology to treat diabetes and other serious disease conditions, as well as for general corporate purposes (approximately $0.5 million).

The Company compensated finders by way of cash fees of $130,462.50 and 521,850 non-transferable finder warrants, each such finder warrant having the same terms as the Unit warrants. Finders were Richardson GMP, Echelon Wealth Partners, Gravitas Securities Inc., Aventine Management Group, Raymond James, Mackie Research Capital Corporation, Canaccord Genuity, CMF AG and CRF Finance AG.

All of the securities issued in connection with the private placement are subject to a four month hold period from the date of issuance in accordance with applicable provincial securities laws in Canada. The Company confirms that there is no material fact or material change about the Company that has not been generally disclosed.

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 for the treatment of disease.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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. Specifically, although the company intends to expend the proceeds from the private placement as described above, there may be circumstances where for sound business reasons, a reallocation of funds may be deemed prudent or necessary. While actual expenditures may differ from the above amounts and allocations, the net proceeds will be used by the company in furtherance of its business. 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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