Toronto, Ontario — March 4, 2026 — Leads & Copy — Sernova Biotherapeutics (TSX: SVA) (OTC: SEOVF) (FSE: PSHO) has announced $7.1 million in financing transactions to strengthen its balance sheet and financial position.
The regenerative medicine company, focused on developing its Cell Pouch Bio-hybrid Organ as a functional cure for type 1 diabetes (T1D), will use $4.0 million from the financing to retire its existing $4.0 million secured term loan maturing April 16, 2026, subject to shareholder approval of the equity financing transaction. The transactions include:
A $1.6 million equity financing via non-brokered private placement at $0.15 per unit, with each unit consisting of one common share and one common share purchase warrant exercisable at $0.25 for 36 months, subject to acceleration provisions. This private placement is planned to close on March 6, 2026.
A $1.5 million convertible debenture financing from an insider/director, bearing interest at 10% per annum and convertible at $0.15 per share, issued together with 10,000,000 warrants exercisable at $0.25 for 36 months, subject to acceleration provisions. The debenture funds have been advanced and the Company will close this transaction immediately upon TSX acceptance.
$4.0 million equity financing from an insider/director, consisting of 26,666,667 units at $0.15 per unit, each unit including one common share and one common share purchase warrant exercisable at $0.20 for 36 months, subject to acceleration provisions. The close of this transaction is subject to shareholder approval at the Annual General Meeting on April 8, 2026.
Sernova has raised over $4.0 million in private placement financings over the past five months, including approximately $900,000 raised in a non-brokered private placement in November of 2025. The company says that these financings together materially improve Sernova’s capital structure and liquidity profile.
According to the company, certain components of the financings constitute related party transactions under MI 61-101 and applicable TSX policies, for which the Company is relying on available exemptions or will seek required disinterested shareholder approval. Interested directors abstained from voting where applicable. The securities issued and issuable in connection with the foregoing financings are subject to a four-month hold period under applicable securities laws in Canada.
Sernova CEO Jonathan Rigby stated that the company has taken decisive steps to stabilize and strengthen its foundation from a financial, management and board and partner perspective over the past year. With these financings plus the expected net retirement of approximately $17 million of debt upon shareholder approval at the AGM, Rigby said Sernova is entering a period of renewed financial health, with a significantly improved capital structure, a strengthened liquidity position, and a continued focus on advancing clinical programs toward delivering a functional cure for type 1 diabetes.
Sernova Biotherapeutics is a clinical-stage company developing regenerative medicine therapeutics combining its Cell Pouch with human donor cells or stem-cell derived islet-like clusters in collaboration with Evotec to create bio-hybrid organs to treat T1D. A bio-hybrid organ is comprised of non-biomaterials, such as the Cell Pouch, integrated with living tissues to restore or enhance the function of a compromised organ.
Source: Sernova Biotherapeutics
