LONDON, ONTARIO - TheNewswire - June 15, 2020 - Sernova Corp. (TSXV:SVA) (OTC:SEOVF) (FSE:PSH), a clinical-stage regenerative medicine therapeutics company, is pleased to announce it has completed the acquisition of cellular local immune protection technology from Converge Biotech, Inc. ("Converge").
"This acquisition is a strategic accelerator for expansion of Sernova's total regenerative medicine cell therapy therapeutics platform," stated Dr. Philip Toleikis, Sernova's President and Chief Executive Officer. "Local immune protection technologies to cloak therapeutic cells have the potential to protect cells from immune system attack within Sernova's Cell Pouch(TM) through different and independent mechanisms to eliminate the need for life-long immunosuppression medications."
Pursuant to the asset acquisition, Sernova acquired all intellectual property associated with Converge's conformal coating cell encapsulation technology ("Conformal Coating Technology"), including issued patents, patent applications, and know-how.
ABOUT SERNOVA'S CONFORMAL COATING TECHNOLOGY
The Conformal Coating Technology consists of a thin proprietary coating layer that effectively cloaks coated therapeutic cells to protect them from an auto-response attack by one's own immune system post cell transplantation into the body.
The advantages and potential benefits of this novel cell encapsulating technology are as follows:
provides protection of therapeutic cells from immune system attack locally within Sernova's Cell Pouch, potentially avoiding the need for life-long immunosuppression medications, that are currently required after cell transplantation;
enables intimate contact of therapeutic cells with the vascularized tissue matrix of the Cell Pouch improving essential physiological interactions of the cells for survival and function, unlike other micro and macro-encapsulation technologies;
improves the diffusion of small molecules and biomolecules (i.e., glucose, insulin, and other proteins or hormones), providing a physiological glucose-stimulated insulin response without delay that occurs with other encapsulation technologies;
and with improved diffusion of biomolecules, may require a smaller load of therapeutic cells to achieve the desired therapeutic effect in comparison to standard microcapsules.
Sernova has also completed its announced $1,000,000 unsecured convertible debenture financing, with the proceeds used to fund the Conformal Coating Technology acquisition. The debenture is repayable on December 9, 2022, unless earlier converted or redeemed, and carries an 8% interest rate. The Company also issued 3,000,000 non-transferable share purchase warrants, each warrant being exercisable into one common share at a price of $0.20 per share up to December 9, 2022. The debenture holder will have the right to convert the principal amount of the debenture into common shares of Sernova at a conversion price of $0.25 per share. The debenture and warrants are subject to a four-month hold period under securities regulations.
Neither the debenture or warrants have been or will be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and such securities may therefore not be offered or sold in the United States or to or for the account or benefit of a person in the United States or a U.S. Person (as defined in Regulation S of the U.S. Securities Act) absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the debenture units in any jurisdiction in which such offer, solicitation or sale would be unlawful.
ABOUT SERNOVA'S CELL POUCH SYSTEM
The Cell Pouch, as part of the Cell Pouch System, is a novel, proprietary, scalable, implantable macro- encapsulation device solution designed for the long-term survival and function of therapeutic cells. The device upon implantation is designed to incorporate with tissue, forming highly vascularized tissue chambers for the transplantation and function of therapeutic cells, which then release proteins and hormones as required to treat disease. The Cell Pouch, along 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 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 (i.e., human donor cells, corrected human cells and stem-cell-derived 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, PLEASE CONTACT:
Tel: (519) 858-5126
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains 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. While Sernova considers these assumptions to be reasonable, these assumptions are inherently subject to significant scientific, business, economic, competitive, market and social uncertainties and contingencies. Additionally, there are known and unknown risk factors that could cause Sernova's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release.
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 beliefs about the effect on company operations and capital markets of events related to the COVID-19 pandemic, the conduct and outcome of discussions with strategic partners, and expected progress in preclinical programs, clinical trials and technology development. 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.
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