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Sernova Biotherapeutics Announces $13 Million Debt-to-Equity Conversion Eliminating Significant Financing Overhang
Toronto, Ontario and Boston, Massachusetts--(Newsfile Corp. - October 1, 2025) - Sernova Biothera...
About this update from Sernova Biotherapeutics Inc
[{"type":"text","content":"Sernova Biotherapeutics Announces $13 Million Debt-to-Equity Conversion Eliminating Significant Financing OverhangToronto, Ontario and Boston, Massachusetts--(Newsfile Corp. - October 1, 2025) - Sernova Biotherapeutics (TSX: SVA) (OTCQB: SEOVF) (FSE: PSH0) (\"Sernova\") a leading regenerative medicine company focused on developing its Cell Pouch Bio-hybrid Organ as a functional cure for type 1 diabetes (T1D), today announced that it has signed debt-to-equity conversion agreements with vendors to convert approximately CAD $13.3 million of outstanding accounts payable debt into equity of Sernova. This represents a significant portion of pre-current management historic accounts payable debt on Sernova's balance sheet as of its last fiscal quarter July 31, 2025. Sernova executive management including the CEO and CFO, and board members, also participated in converting amounts owed to them to equity in the company. \"This debt-to-equity conversion is a strong vote of confidence from supportive partners and vendors,\" said Jonathan Rigby, CEO of Sernova. \"It underscores the shared vision and commitment we have to deliver a functional cure for patients living with type 1 diabetes. By removing a large portion of this inherited liability from our balance sheet, we are in a stronger financial position to advance an array of ongoing funding discussions in order to secure the capital necessary to advance our Cell Pouch Bio-hybrid Organ into the final cohort of our phase 1 / 2 clinical trial prior to year end.\"The debt-to-equity conversion was completed by way of a non-brokered private placement of 66,346,502 million units at a unit price of $0.19. Each unit consists of either one common share or one preferred share of Sernova, a half warrant with an exercise price of $0.25 for two years and a second half warrant with an exercise price of $0.30 for 3 years. Both warrants have features that allow the company to accelerate the expiry of the warrants at preset common share price levels. The company also announced that it negotiated the removal of a potential early repayment clause of its $4 million term debt so that no amount is payable before April 2026. With settlement of the majority of accounts payable debt, Sernova is no longer subject to monthly repayments of debt nor required to allocate any proportion of financing proceeds to...