Sernova Closes Oversubscribed Private Placement and Accelerates Development Programs

LONDON, ONTARIO – TheNewswire – September 23, 2020 – Sernova Corp. (“Sernova” or the “Company”) (TSXV:SVA) (OTC:SEOVF) (FSE:PSH) is pleased to announce that it has closed its non-brokered private placement announced on September 9, 2020. The Company received over-subscriptions of $0.7 million, increasing the total amount of the private placement to $3.7 million.

“We are very pleased with the resoundingly positive response and rapid closing to our oversubscribed offering, which included participation by all directors of the Company. The offering will enable us to build further upon our recent momentum, strategically enhancing and solidifying our novel cell therapy platform with the goal to provide a “functional” cure for diabetes and other rare diseases,” said Dr. Philip Toleikis, President and CEO of Sernova Corp.

A total of 12,218,333 units were issued in the private placement at $0.30 per unit, with each unit consisting of one common share and one warrant. Each warrant entitles the holder to acquire one common share at a price of $0.35 per share for a period of 24 months, subject to abridgment of the exercise period if the 10-day volume-weighted average price of the Company’s shares exceeds $0.50 per share.

The net proceeds of the private placement will be used to accelerate development of the Company’s recently acquired cellular local immune protection technology, further its immune-protected diabetes stem cell-derived program and support the Company’s US Phase I/II diabetes clinical trial.

The closing is subject to the acceptance of the TSX Venture Exchange. The Company also issued 198,310 warrants and paid a total of $59,493 to qualified finders. All securities issued in connection with the private placement will be subject to a hold period of four months, in accordance with applicable Canadian securities regulations.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933 or any state securities laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act of 1933 and all applicable state securities laws, or an applicable exemption from registration requirements.

ABOUT SERNOVA CORP.

Sernova Corp is developing regenerative medicine therapeutic solutions using a medical device (Cell Pouch(TM)) and immune protected therapeutic cells/tissues (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 cellular production of proteins or hormones missing or in short supply within the body. For more information, please visit www.sernova.com.

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, hormones, or other factors as required to treat disease. Sernova is currently conducting a Phase I/II study at the University of Chicago and has demonstrated encouraging early safety and efficacy indicators. The Cell Pouch, in combination with therapeutic cells/tissues, has been shown to provide long-term safety and efficacy in preclinical models of diabetes, hemophilia A and other indications supporting our therapeutics platform.

For further information contact:

Dominic Gray

Sernova Corp

Tel: (519) 858-5126

dominic.gray@sernova.com

www.sernova.com

Forward-Looking Information

This release contains statements that, to the extent they are not recitations of historical facts, may constitute “forward-looking statements” that involve various risks, uncertainties, and assumptions, including, without limitation, statements regarding the prospects, plans, and objectives of the Company. Wherever possible, but not always, words such as “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential for” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur are used to identify forward-looking statements. These statements reflect management’s beliefs with respect to future events and are based on information currently available to management on the date such statements were made. Many factors could cause Sernova’s actual results, performances or achievements to not be as anticipated, estimated or intended or to differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such factors could include, but are not limited to, the Company’s ability to secure additional financing and licensing arrangements on reasonable terms, or at all; ability to conduct all required preclinical and clinical studies for the Company’s Cell Pouch System and/or related technologies, including the timing and results of those trials; ability to obtain all necessary regulatory approvals, or on a timely basis; ability to in-license additional complementary technologies; ability to execute its business strategy and successfully compete in the market; and the inherent risks associated with the development of biotechnology combination products generally. Many of the factors are beyond our control, including those caused by, related to, or impacted by the novel coronavirus pandemic. Investors should consult the Company’s quarterly and annual filings available on www.sedar.com for additional information on risks and uncertainties relating to the forward-looking statements. 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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