LONDON, ONTARIO (February 19, 2013) -- Sernova Corp. ("Sernova" or the "Company") (TSX VENTURE: SVA) today announce that further to its news release dated January 21, 2013, it has now closed its non-brokered private placement consisting of 10,000,000 units (the "Units") at a price of $0.20 per Unit for gross proceeds of $2,000,000 (the "Offering").
Net proceeds from the offering will be utilized in the advancement of Sernova's clinical development program of its Cell Pouch™ for the treatment of diabetes, new product initiatives and general corporate purposes.
Each Unit consists 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.
In connection with closing of the Offering, the Company paid an eligible finder a cash commission of $140,000 and issued 700,000 non-transferable finder's warrants (the "Finder's Warrants"). Each Finder's Warrant entitles the holder to purchase one common share of the Company at a price of $0.20 for a period of 24 months from the date of issuance.
All securities issued pursuant to the Offering are subject to a four month hold period expiring on June 15, 2013.