SVA:CC - Sernova Provides Organizational Update

April, 25 2024 04:00 PM Sernova Corp.

(TheNewswire)

LONDON, Ontario; BOSTON, Massachusetts – TheNewswire - April 25, 2024 – Sernova Corp. (TSX:SVA)(OTC:SEOVF) (FSE/XETRA:PSH), a clinical-stage biotechnology companyfocused on the development of regenerative medicine cell therapies fortreatment of chronic diseases, today announced the retirement of ChiefTechnology Officer (CTO), Dr. Philip Toleikis along with progress on strategic transformation efforts including arestructuring of operations and a workforce reduction ofapproximately 35%.

Commenting on his retirement, Dr. Toleikis said, “It has been atremendous honor and privilege to serve Sernova since 2009, initiallyas the President, CEO and director, and more recently as its CTO.Significant progress has been made and there is exciting work aheadthat I am confident will be realized by the team, under the guidanceof our CEO, Ms. Pussinen.” Dr. Toleikis further states, “I ampleased to provide continued support to Sernova as a consultant. I amproud of the Company’s advancements towards redefining the waychronic diseases will be treated using a cell therapy-based approachwhile importantly contributing to improving the lives of those livingwith chronic diseases.”

“Philip’s contributions to Sernova’s research anddevelopment, and fund-raising efforts have been foundational to theCompany’s evolution into a next-generation regenerative medicine company,” said Brett Whalen, Chairman of the SernovaBoard . “He will leave a company which iswell-positioned to foster the next wave of innovations in stem celltherapies. On behalf of the Board of Directors and the entire company,I would like to thank Dr. Philip Toleikis for his contributions andunwavering dedication to the Company. We wish him all the best for his future.”

As communicated in early April, following a review of the company’s therapeutic pipelineand emerging opportunities for its Cell Pouch system platformtechnologies, Sernova confirmed key priorities including itslighthouse program in insulin dependent Type 1 Diabetes plus itsintention to advance an IND filing for its post-operativehypothyroidism program. “The pipeline and platform review andassociated strategy refresh highlighted several ways by which tooptimize financial resources, extending the Company’s cash runway. We continue to seek ways to raise additional capital to strengthenour financial foundation,” said Cynthia Pussinen, Chief ExecutiveOfficer of Sernova. “In connection with the strategictransformation, we will pause on any new investments into theconformal coating program to reallocate funds. In parallel, wecontinue to evaluate alternative approaches to obviate the need forimmunosuppressive regimens for our allogeneic therapies.”

Sernova has implemented a plan to fortify the balancesheet and cash position , including a workforcerestructuring, representing a key step towards streamlining theorganization while ensuring the ability to secure core competenciesneeded to drive further progress in key clinical and pre-clinicalassets. “Decisions to scale back or to rebalance headcount areextremely difficult. I want to express my heartfelt appreciation andgratitude to those impacted for their invaluable contributions,dedication to helping patients and impact to furthering theCompany’s vision of a future where chronic conditions are no longerinsurmountable obstacles”, said Ms. Pussinen.

The Company confirms the completion and closure of allinternal investigation efforts, previously announced with respect toits former CFO and potentially a second employee of the Company. Nonew findings were revealed and there will be no further action on thematter. The investigation confirmed that there have been nosecurities violations and that findings bore no material impact tofinancial statements and operations.

Lastly, Sernova Director Mr. Bertram von Plettenberg has retired fromthe Company’s Board, effective April 23rd. “The Board andManagement sincerely thank Mr. von Plettenberg for his past year ofservice to the Company, and wish him well in future endeavors,” saidMs. Pussinen. “The evolution and composition of the Board willcontinue, as we look to enhance our life sciences industry specificstrength, to better serve our patients and shareholders.”

ABOUT SERNOVA’S ANNUAL GENERAL MEETING

Sernova’s Annual General Meeting will be held onTuesday April 30, 2024 starting at 1:00 PM ET. The meetingwill be conducted virtually, via live webcast and accessible online at https://virtualmeetings.tsxtrust.com/1571 .

Please note that this site may not be fully accessible on all internetbrowsers, and it is advisable to use a browser other than InternetExplorer for optimal experience. If you are unable to join themeeting through your usual web browser, we suggest trying an alternatebrowser.

For investors who wish to submit questions via the TSX Trust portalvoting control numbers will be needed. For attendees who wouldsimply like to listen to the meeting conduct, you can register as aguest.

ABOUT SERNOVA AND ITS CELL POUCH SYSTEM PLATFORM FOR CELL THERAPY

Sernova Corp. is a clinical-stage biotechnology company that isdeveloping therapeutic cell technologies for chronic diseases,including insulin-dependent diabetes, thyroid disease, and blooddisorders that include hemophilia A. Sernova is currently focused ondeveloping a ‘functional cure’ for insulin-dependent diabetes withits lead technology, the Cell Pouch System, a novel implantable andscalable medical device with immune protected therapeutic cells.

On implantation, The Cell Pouch forms a natural, vascularized tissueenvironment in the body allowing long-term survival and function oftherapeutic cells that release essential factors that are absent ordeficient in the bodies of patients with certain chronic diseases.Sernova’s Cell Pouch System has demonstrated its potential to be a‘functional cure’ for people with T1D in an ongoing Phase 1/2clinical study at the University of Chicago.

Sernova partnered with Evotec to develop an implantable off-the-shelfiPSC (induced pluripotent stem cells) based islet replacement therapy.This partnership provides Sernova a potentially unlimited supply ofinsulin-producing cells to treat millions of patients withinsulin-dependent diabetes (type 1 and type 2). Sernova’sdevelopment pipeline that uses its Cell Pouch System also includes: acell therapy for hypothyroid disease resulting from thyroid glandremoval and an ex vivo lentiviral Factor VIII gene therapy forhemophilia A.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Christopher Barnes

VP, Investor Relations

Sernova Corp.

Tel: +1 519-902-7923

Email: christopher.barnes@sernova.com

Website: www.sernova.com

FORWARD-LOOKING INFORMATION

This release contains statements that, to the extentthey 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 thecompany. Wherever possible, but not always, words such as"expects", "plans", "anticipates","believes", "intends", "estimates","projects", "potential for" and similarexpressions, or that events or conditions "will","would", "may", "could" or"should" occur are used to identify forward-lookingstatements. These statements reflect management’s beliefs withrespect to future events and are based on information currentlyavailable to management on the date such statements were made. Manyfactors could cause Sernova’s actual results, performances orachievements to not be as anticipated, estimated or intended or todiffer materially from those expressed or implied by theforward-looking statements contained in this news release. Suchfactors could include, but are not limited to, the company’s abilityto secure additional financing and licensing arrangements onreasonable terms, or at all; ability to conduct all requiredpreclinical and clinical studies for the company’s Cell Pouch Systemand or related technologies, including the timing and results of thosetrials; ability to obtain all necessary regulatory approvals, or on atimely basis; ability to in-license additional complementarytechnologies; ability to execute its business strategy andsuccessfully compete in the market; and the inherent risks associatedwith 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. Investorsshould consult the company’s quarterly and annual filings availableon www.sedarplus.ca for additionalinformation on risks and uncertainties relating to the forward-lookingstatements. Sernova expressly disclaims any intention or obligation toupdate or revise any forward-looking statements, whether as a resultof new information, future events or otherwise.

Company Name:	Sernova Corp.
Stock Symbol:	SVA:CC
Market:	TSXVC

Twitter