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Wednesday, 07/06/2016 4:36:37 PM

Wednesday, July 06, 2016 4:36:37 PM

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Sernova closes $4.2-million private placement

2016-06-30 18:33 ET - News Release

Mr. Philip Toleikis reports


Sernova Corp. has completed a non-brokered private placement of $4.2-million, pursuant to which Sernova issued a total of 16.8 million units in two closings (June 27, 2016, and June 30, 2016).

Each unit issued in the private placement consists of one common share and one common share purchase warrant, and each warrant is exercisable into one share at a price of 35 cents per share for a 24-month exercise period, subject to abridgment of the exercise period (after the expiry of the four-month hold period) on 30 days notice to holders in the event that the 20-day volume-weighted price of the shares exceeds 50 cents.

The gross proceeds from the private placement will be used to finance a United States-based clinical trial ($2.5-million is allocated), and to finance Sernova's research and development programs, including corporate and academic collaborations ($1.2-million is allocated) using its platform technology to treat diabetes and other serious disease conditions, as well as for general corporate purposes (approximately $500,000).

The company compensated finders by way of cash fees of $130,462.50 and 521,850 non-transferable finder warrants, each such finder warrant having the same terms as the unit warrants. Finders were Richardson GMP, Echelon Wealth Partners, Gravitas Securities Inc., Aventine Management Group, Raymond James, Mackie Research Capital Corp., Canaccord Genuity, CMF AG and CRF Finance AG.

All of the securities issued in connection with the private placement are subject to a four-month hold period from the date of issuance in accordance with applicable provincial securities laws in Canada. The company confirms that there is no material fact or material change about the company that has not been generally disclosed.

We seek Safe Harbor.