LONDON, Ontario; BOSTON, Massachusetts – June 12, 2024 – TheNewswire – Sernova Corp. (TSX:SVA) (OTCQB:SEOVF) (FSE/XETRA:PSH), a clinical-stage biotechnology company focused on the development of regenerative medicine cell therapies for treatment of chronic diseases, today announced that it is not proceeding with its public offering of units and is withdrawing its preliminary short form prospectus filed on June 6, 2024.

The decision comes after careful consideration and thorough assessment of current market dynamics. Sernova remains committed to its mission of developing innovative therapies to improve the lives of patients with chronic diseases, including Type 1 diabetes, thyroid disease and hemophilia A. Additionally, the Company believes the current market conditions do not reflect the value of our intellectual property, T1D clinical program, development collaboration for iPSC, opportunity for a near term clinical trial in post operative hypothyroidism, and upcoming potential catalysts.

"In short, our shareholders deserve better.  We believe cancelling this financing round is the prudent decision given the current market volatility which has impacted the Company’s market capitalization," said Cynthia Pussinen, CEO of Sernova. "We remain steadfast in our dedication to advancing our groundbreaking therapeutic platforms and are exploring more favorable financing options.”

Sernova's Cell Pouch System™ is a revolutionary technology designed to create a natural environment for therapeutic cells, offering the potential for long-term, sustainable treatment options for patients. The Company's ongoing clinical trial, a Phase I/II study for insulin-dependent diabetes has demonstrated promising results with the longest patient at more than four years insulin independent, further validating the potential of its platform technology.

Investors and stakeholders are encouraged to visit the Company's website at www.sernova.com for additional information and updates on Sernova's progress.

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, thyroid disease, and blood disorders that include hemophilia A. 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 the bodies of 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:

Cynthia Pussinen

Chief Executive Officer

Sernova Corp.

Email: cynthia.pussinen@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 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.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.