Sernova Bolsters Finances, Converts CAD $13.3M Debt to Equity
Sernova Biotherapeutics has bolstered its financial position by converting CAD $13.3 million of national debt into equity. The move, completed through a private placement, sees the company's CEO, CFO, and board members also converting amounts owed to them into equity.
The debt-to-equity conversion involved the issuance of 66,346,502 units at $0.19 per unit, each consisting of either one common or preferred share, and two warrants. This represents a significant portion of Sernova's historic accounts payable debt as of July 31, 2025.
The company has also removed an early repayment clause from its $4 million term debt, delaying any payment until April 2026. This change means Sernova is no longer subject to monthly debt repayments or allocating financing proceeds to debt repayment.
Sernova is developing a Cell Pouch Bio-hybrid Organ, initially targeting functional cures for type 1 diabetes (T1D) and thyroid disorders. The company aims to create bio-hybrid organs using its Cell Pouch integrated with living tissues to restore or enhance organ function.
Sernova's debt-to-equity conversion has improved its financial situation, allowing it to focus on its innovative bio-hybrid organ technology. The company is now better positioned to pursue its goal of developing functional cures for type 1 diabetes and other disorders.
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