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Press release Communiqué de presse

August 20, 2024 20 August, 2024

Sernova Announces Up to $4 Million Private Placement Priced at a Premium

Sernova Announces Up to $4 Million Private Placement Priced at a Premium

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

LONDON, ONTARIO - August 20, 2024 - Sernova Corp. (TSX: SVA) (OTCQB: SEOVF) (FSE: PSH) is pleased to announce that the Company has secured over $2 million in lead orders in connection with a non-brokered private placement offering (the “Offering”) for up to $4 million units priced at a premium to the market.

Each unit is priced at $0.25, and consists of one common share and one warrant. Each warrant is priced at $0.30 per share and is exercisable for a period of 18 months, subject to Sernova’s option to shorten the exercise period if the 20-day volume-weighted average price of the Company’s shares exceeds $0.50.

The net proceeds from the private placement will be used to continue enrolment in the Company's US-based Phase I/II Type 1 diabetes clinical trial, to advance an IND filing for its post-operative hypothyroidism program and for general corporate purposes.

Newly appointed Sernova CEO Jonathan Rigby stated, “We are pleased to announce a financing round led by legacy investors with insider participation. Our goal is to secure sufficient capital to maintain ongoing clinical initiatives. The company recently announced that data from its ongoing clinical trial of its Cell Pouch™ technology containing donor Islet cells to treat Type 1 diabetes will be presented at the European Association for the Study of Diabetes (EASD), 9-13 September in Madrid, Spain.”

All securities issued in connection with the private placement will be subject to a statutory hold period of four months. Completion of the private placement is subject to customary closing conditions, including acceptance of the TSX. The private placement is expected to close prior to August 28, 2024.

The Company expects insider participation in the Offering, which may be considered a related party transaction within the meaning of Multilateral Instrument 61-101 (“MI 61-101”). Sernova intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of any insider participation.

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 AND ITS CELL POUCH SYSTEM PLATFORM FOR CELL THERAPY

Sernova Corp. is a clinical-stage biotechnology company that is developing therapeutic cell technologies for chronic diseases, including insulin-dependent diabetes and thyroid disease. Sernova is currently focused on developing a ‘functional cure’ for insulin-dependent diabetes with its lead technology, the Cell Pouch System, a novel implantable and scalable medical device with immune protected therapeutic cells.

On implantation, The Cell Pouch forms a natural, vascularized tissue environment in the body allowing long- term survival and function of therapeutic cells that release essential factors that are absent or deficient in patients with certain chronic diseases. Sernova’s Cell Pouch System has demonstrated its potential to be a ‘functional cure’ for people with T1D in an ongoing Phase 1/2 clinical study at the University of Chicago.

Sernova partnered with Evotec to develop an implantable off-the-shelf iPSC (induced pluripotent stem cells) based islet replacement therapy. This partnership provides Sernova a potentially unlimited supply of insulin- producing cells to treat millions of patients with insulin-dependent diabetes (type 1 and type 2). Sernova’s development pipeline that uses its Cell Pouch System also includes: a cell therapy for hypothyroid disease resulting from thyroid gland removal and an ex vivo lentiviral Factor VIII gene therapy for hemophilia A

FOR FURTHER INFORMATION, PLEASE CONTACT:

Christopher Barnes VP Investor Relations Sernova Corp. Tel: +1 519-902-7923 Email: christopher.barnes@sernova.com Website: www.sernova.com

FORWARD-LOOKING INFORMATION

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 complete the Offering, in part or at all; secure additional financing and/or licensing arrangements on reasonable terms, or at all; 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; obtain all necessary regulatory approvals, or on a timely basis; in-license additional complementary technologies; 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.sedarplus.ca 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.