Due to Oversubscription, Offering Increased to $3,750,000
LONDON, ONTARIO--(Marketwired - June 27, 2016) - Sernova Corp. ("Sernova" or the "Company") (TSX
VENTURE:SVA)(OTCQB:SEOVF)(FRANKFURT:PSH) is pleased to announce that it is closing today $2,000,000 of its non-brokered private
placement announced on June 21, 2016. In addition, as the Company has received over-subscriptions of $1,650,000, it is increasing
the total amount of the non-brokered private placement offering to $3,750,000 for a total offering of 15,000,000 units (the
"Units") at $0.25 per Unit. The Company plans to close the balance of the placement, Thursday, June
30th, 2016.
"We are pleased with the very strong interest from investors in Sernova's future in the regenerative medicine space as
indicated by the oversubscription of the private placement," said Dr. Philip Toleikis, President and CEO of Sernova.
Net proceeds from the private placement will be used to fund Sernova's regenerative medicine clinical program and
collaborations utilizing the Company's platform technology to treat diabetes and other serious disease conditions, as well as for
general corporate purposes.
In the first closing today, Sernova will issue 8,000,000 Units at $0.25 per Unit for gross proceeds of $2,000,000. Each Unit
to be issued will consist of one common share and one common share purchase warrant, with each warrant 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 twenty-day volume weighted price of the
shares exceeds $0.50.
Also, in respect of the first closing, the Company expects to compensate finders by way of cash fees of $132,912.50 and
531,650 non-transferable finder warrants, each such finder warrant having the same terms as the Unit warrants. The Company
may also compensate finders on a portion of the increased private placement consisting of 7% in cash and 7% in finder warrants,
or a combination thereof.
Completion of the $3,750,000 private placement is subject to the receipt of the approval of the TSX Venture Exchange. All
securities issued in connection with the private placement will be subject to a statutory hold period of four months.
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.
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, which include our beliefs about the functionality of the Cell Pouch
System™ and our cell technologies, 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.