Core Insights - Sernova Biotherapeutics announced a CAD$1,000,000 unsecured convertible debenture financing with Dr. Steven Sangha to fund working capital [1][2] - The debenture carries a 15% interest rate and is repayable on March 4, 2027, with the option for early conversion or redemption [2] - The company issued 5,000,000 non-transferable share purchase warrants, exercisable at CAD$0.20 per share until March 4, 2028 [2] Company Overview - Sernova Biotherapeutics is focused on developing regenerative medicine therapeutics, specifically its Cell Pouch Bio-hybrid Organ as a functional cure for type 1 diabetes [1][4] - The company aims to create bio-hybrid organs by combining its Cell Pouch with human donor cells or stem cell-derived therapies to treat chronic diseases [4] - The innovative approach targets chronic diseases, initially focusing on type 1 diabetes and thyroid disorders [4] Related Party Transaction - The issuance of debentures and warrants to Dr. Sangha is classified as a "related party transaction" under Multilateral Instrument 61-101 [3] - The company is relying on exemptions from formal valuation and minority shareholder approval requirements due to the transaction's fair market value being below 25% of its market capitalization [3] - The financing was closed without a material change report to expedite securing the terms [3]
Sernova Biotherapeutics Secures $1 Million Convertible Debt Financing