LONDON, ONTARIO –June 30, 2016 – Sernova Corp. (“Sernova” or the “Company”) (TSX-V: SVA) (OTCQB: SEOVF) (FSE: 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.
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(TM), 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.
For further information contact:
Philip Toleikis, Ph.D., President and CEO
Tel: (604) 961-2939