Sernova Corp. announces $20-million offering as its Cell Pouch technologies gain widespread investor attention
Photo: Sernova Corp. president and CEO, Dr. Philip Toleikis
LONDON-BASED SERNOVA Corp., a leading clinical-stage regenerative medicine therapeutics company, has announced it has entered into an agreement with Canaccord Genuity Corp. and Leede Jones Gable Inc. to sell 16.7 million units of the company at (Cdn.) $1.20 per unit for gross proceeds of more than $20 million.
Sernova Corp., headquartered at The Stiller Centre on Collip Circle, is developing regenerative medicine therapeutic technologies using a medical device ― Sernova’s patented Cell Pouch System ― and immune protected therapeutic 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.
The Cell Pouch 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 in a Canadian first-in-human study. Sernova is currently conducting a Phase I/II study at the University of Chicago.
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The proceeds of the offering will be used to advance Sernova’s clinical development program, including its U.S. Phase I/II Cell Pouch clinical trial, expand Sernova’s research and development programs, including local immune protection technologies for the Cell Pouch, as well as for working capital and general corporate purposes.
In late January, Sernova announced that it had entered into multiple research collaboration agreements with global pharmaceutical companies to deploy its in-house cell therapy expertise and patent-protected Cell Pouch technologies in combination with proprietary therapeutic cell assets designated by the pharmaceutical collaborators. According to Sernova, further details of these agreements are being kept confidential for strategic reasons.
“The research collaborations follow the ongoing clinical success of Sernova’s Cell Pouch technologies in diabetes, and reflect the value and evolving recognition of our technologies and cell therapy platform,” says Dr. Philip Toleikis, Sernova president and CEO.
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“These important partnerships with leaders in the pharma industry build upon Sernova’s business strategy to develop a portfolio of products to realize the full potential of Sernova’s regenerative medicine platform by extending and broadening its application to new therapeutic areas and modalities. Sernova’s goal is to provide people with a functional cure for multiple chronic and rare diseases.”
With the news of impressive clinical data and continued investment from Sernova, analysts and investors have been increasingly bullish on the company, which also announced this week the start of trading of Sernova shares on Xetra, the electronic trading system of Deutsche Börse AG in Germany.