Sernova Receives Second Tranche Equity Investment from Evotec of $6.8 Million at a Price of $2.50 Per Share
LONDON, Ontario, Sept. 01, 2022 (GLOBE NEWSWIRE) -- Sernova Corp. (TSX:SVA) (OTCQB:SEOVF) (FSE/ XETRA:PSH), a clinical-stage company and leader in regenerative medicine cell therapeutics, today announced that it has completed the second and final tranche of its previously announced private placement with Evotec SE (FSE:EVT) (NASDAQ: EVO) of 2,709,800 common shares of the Company (“Common Shares”) at a price of $2.50 per share for total proceeds of $6,774,500. Upon completion of the second tranche, Evotec’s strategic investment in Sernova totals $27,098,000.
“Evotec’s investment at $2.50 per share, significantly more than double yesterday’s closing price, reflects the value our strategic partner places on Sernova relative to the current trading price on the TSX,” commented Dr. Philip Toleikis, President and CEO of Sernova Corp. “The dedication and synergy of our mutual teams to advance the iPSC diabetes program expeditiously has been impressive. We remain confident that our combined product strategy could dramatically impact the day to day lives of millions of people and their families worldwide with diabetes. With $50 million on our balance sheet, including Evotec’s additional investment and recent significant exercises of outstanding warrants, Sernova is well positioned to expedite the advancement of our iPSC diabetes stem cell initiative with Evotec and other regenerative cell therapy programs which we envision having a significant valuation impact.”
Sernova will use the net proceeds from the Common Shares for general working capital purposes and to continue pursuing ‘functional cures’ for diabetes, hypothyroidism and hemophilia A. The Common Shares are subject to a statutory four month hold period.
In addition to the Evotec private placement share issuances, 14,814,535 common shares have been issued for the exercise of warrants for proceeds totaling $4,493,587 since the end of the Company’s last filed fiscal quarter (April 30, 2022). All warrants with expiry dates of August 16, August 30, and September 9, 2022 have been fully exercised by the warrant holders. Of the warrants previously issued expiring September 22, 2022, to date a total of 2,382,954 have been exercised by the warrant holders. If the remaining outstanding warrants are fully exercised by September 22, 2022, additional proceeds of approximately $3.5 million will be received and further bolster the Company’s cash reserves.
ABOUT SERNOVA CORP. AND THE CELL POUCH SYSTEM™ PLATFORM FOR CELL THERAPY
Sernova Corp. is a clinical-stage biotechnology company that is developing regenerative medicine therapeutic technologies for chronic diseases, including diabetes, thyroid disease, and blood disorders including hemophilia A. Sernova is currently focused on developing a ‘functional cure’ for diabetes with its regenerative cell therapy platform technologies, including its proprietary Cell Pouch™. On implantation, the Cell Pouch forms a natural vascularized tissue environment in the body for long-term survival and function of therapeutic cells that release necessary proteins or factors missing from the body to treat chronic diseases. Sernova’s Cell Pouch System has already shown it can potentially provide a ‘functional cure’ to people with type 1 diabetes in an ongoing Phase 1/2 clinical study at the University of Chicago. Sernova is also advancing its proprietary conformal coating technology in collaboration with the University of Miami to cloak the therapeutic cells from the immune system attack with the goal to eliminate the need for chronic immunosuppressives. In May 2022, Sernova and Evotec entered into a global strategic collaboration to develop an implantable off-the-shelf iPSC-based (induced pluripotent stem cells) beta cell replacement therapy. This collaboration potentially provides Sernova an unlimited supply of insulin-producing cells to treat millions of patients with insulin-dependent diabetes (type 1 and type 2). Sernova is also gearing up to be in the clinic in two additional programs that utilize its Cell Pouch System – an implantable cell therapy for benign thyroid disease resulting from thyroid gland removal and an ex-vivo lentiviral factor VIII gene therapy for hemophilia A.
FOR FURTHER INFORMATION, PLEASE CONTACT:
VP, Investor Relations
Corey Davis, Ph.D.
LifeSci Advisors, LLC
Elizabeth Miller, M.D.
This release contains statements that, to the extent they are not recitations of historical facts, may constitute “forward-looking statements” that involve various risks, uncertainties, and assumptions, including, without limitation, statements regarding the prospects, plans, and objectives of the company. Wherever possible, but not always, words such as "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential for" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur are used to identify forward-looking statements. These statements reflect management’s beliefs with respect to future events and are based on information currently available to management on the date such statements were made. Many factors could cause Sernova’s actual results, performances or achievements to not be as anticipated, estimated or intended or to differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such factors could include, but are not limited to, the company’s ability to secure additional financing and licensing arrangements on reasonable terms, or at all; ability to conduct all required preclinical and clinical studies for the company’s Cell Pouch System and/or related technologies, including the timing and results of those trials; ability to obtain all necessary regulatory approvals, or on a timely basis; ability to in-license additional complementary technologies; ability to execute its business strategy and successfully compete in the market; and the inherent risks associated with the development of biotechnology combination products generally. Many of the factors are beyond our control, including those caused by, related to, or impacted by the novel coronavirus pandemic. Investors should consult the company’s quarterly and annual filings available on www.sedar.com for additional information on risks and uncertainties relating to the forward-looking statements. 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.