LONDON, ONTARIO (January 21, 2013) -- Sernova Corp. ("Sernova" or the "Company") (TSX VENTURE: SVA) has arranged a non-brokered private placement in the amount of CDN$2.0M (the "Offering"). The Offering will consist of 10.0M units (the "Units") each sold at price of $0.20 per Unit.
"This private placement is a further indication of increased investor interest in our technology and the potential of the Cell Pouch System™," said Dr. Philip Toleikis, President and CEO of Sernova Corp. "Net proceeds from the Offering will be used to fund Sernova's research studies utilizing our platform technology to treat diabetes and other serious disease conditions, as well as for general corporate purposes."
Each Unit will consist of one common share and one common share purchase warrant (a "Warrant"), with each Warrant entitling the holder thereof to purchase one common share of the Company (a "Warrant Share") for a period of 36 months from the closing of the Offering (the "Exercise Period") at a price of $0.35 per Warrant Share for the first 24 months of the Exercise Period and at a price of $0.40 per Warrant Share for the last 12 months of the Exercise Period.
All securities issued in connection with the Offering will be subject to a statutory hold period of four months from the date of issuance in accordance with applicable securities law legislation. The Company may pay a finder's fee on the Offering of 7% in cash, warrants, or a combination thereof.
The Offering is subject to a number of conditions including receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange.