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Press release Communiqué de presse


June 25, 2018 25 June, 2018

Sernova Announces $2 Million Private Placement Financing


THIS NEWS RELEASE IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Source: Sernova Corp

June 26, 2018 6:00 a.m. EDT

LONDON, ONTARIO – June 26, 2018 – Sernova Corp. (TSX-V: SVA) (OTCQB: SEOVF) (FSE: PSH) is pleased to announce that the Company has secured a $1 million institutional lead order in connection with a proposed private placement (the “Offering”) of up to $2 million special warrants (“Special Warrants”) of the Company at a price of $0.25 per Special Warrant.

Each Special Warrant will convert, for no additional consideration, into one Unit (“Unit”) of the Company. Each Unit will consist of one common share and one common share purchase warrant (“Warrant”) of the Company. Each Warrant will be exercisable into one share at $0.35 per share for a period of 24 months, subject to abridgement of the exercise period if the 20 day volume weighted price of the Company’s shares exceeds $0.50 per share.

Net proceeds from the private placement will be used to fund Sernova's US-based Phase I/II diabetes clinical trial as well as potential collaborations utilizing our Cell Pouch System platform technologies and for general corporate purposes.

All securities issued in connection with the private placement will be subject to a statutory hold period of four months. The Company will compensate finders on a portion of the private placement, such compensation consisting of 7% in cash or 7% in finder warrants, or a combination thereof. Completion of the private placement is subject to the receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange.

The Company has agreed to file a final short form prospectus to qualify the distribution of the Units upon deemed conversion of the Special Warrants (the "Qualification") following the receipt of a final prospectus. If the Qualification does not occur within 4 months of closing, the Special Warrants will automatically convert into Units immediately following the expiry of the 4-month hold period. This news release does not constitute an offer to sell or a 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 United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Sernova’s Cell Pouch technologies

The Cell Pouch is a novel, proprietary, scalable, implantable macroencapsulation device for the long-term survival and function of therapeutic cells (donor, stem cell-derived cells and xenogeneic cells) which then release proteins and/or hormones as required to treat disease. The device, designed to eliminate concerns of fibrosis upon implantation incorporates with tissue, forming highly vascularized tissue chambers for the transplantation and function of therapeutic cells. The device with therapeutic cells has been shown to provide long-term safety and efficacy in small and large animal models of diabetes and has been proven to provide a biologically compatible environment for survival of insulin-producing cells in humans.

About Sernova Corp

Sernova Corp is developing regenerative medicine therapeutic technologies using a medical device and immune protected therapeutic cells to improve the treatment and quality of life of people with chronic metabolic diseases such as insulin-dependent diabetes, blood disorders including hemophilia, and other diseases treated through replacement of proteins or hormones missing or in short supply within the body. For more information, please visit www.sernova.com

For further information contact:

Philip Toleikis, Ph.D., President and CEO Tel: (604) 961-2939 philip.toleikis@sernova.com www.sernova.com

Ray Matthews & Associates Tel: (604) 818-7778\ ray@raymatthews.ca www.raymatthews.ca

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, which include our belief about the conduct and outcome of clinical trials and that Sernova will be able to raise additional capital to fund its clinical programs including its planned US FDA clinical trial. 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.