The World Economic Forum (WEF) and the Harvard School of Public Health report entitled “The Global Economic Burden of Non-communicable Diseases” estimates global diseases
kill 36 million people every year and will cost upwards of US$47 trillion by 2030.
The World Health Organization's four biggest killers; cancer, heart disease, diabetes and
chronic respiratory disease are dominant in non-communicable disease (NCD) mortality
and morbidity. All four are increasing in prevalence and the cost of treatment is spiraling
out of control.
Exactly what is Diabetes?
Diabetes is a condition in which blood sugar levels are too high.
Much of the food you eat is broken down into a simple sugar called glucose. In response
to a rise in glucose levels after a meal the islets beta-cells in the pancreas read blood glucose
levels and secrete insulin into the blood. Insulin acts to open the gates of cells allowing the
glucose to move from the blood stream into the cells where it can be utilized for energy.
A Type 1 diabetes diagnosis means the pancreatic beta cells that read glucose levels and secrete
insulin have been damaged or destroyed. Thus glucose cannot move from the bloodstream into the cells.
A Type 2 (insulin resistance) diabetes diagnosis is a far more common verdict for people than
Type 1. Insulin resistance happens because of chronically elevated blood sugar and insulin levels.
These elevated levels of sugar and insulin have the effect of "numbing" the cellular processes which
move the sugar from the blood stream to the cells - the body cannot respond to the insulin "requests" to move blood sugar into the cells. Roughly 27% of the people who start out as Type 2
diabetics, will, in the future require insulin injections similar to Type 1 diabetics.
Between Type-1 and Type-2 patients with diabetes the total number of diabetics requiring insulin
in just North America, is about nine million.
Sernova Corp. TSX:V-SVA is a Canadian-based medical device development company focused on
chronic metabolic, neurological, and haematological diseases. Due to the enormous market and
potential for significantly improved patient treatment, Sernova’s first product focus is on diabetes.
Sernova’s Cell Pouch System™ is a versatile, scalable credit card-sized device, made of FDA approved
materials that provides a natural "organ-like" environment for therapeutic cells such as insulin
producing islets for diabetics. Think of the Cell Pouch System™ as a potential natural insulin producing
pump with the added benefit of fine-tuned glucose control. Placed under the skin in a simple inexpensive
procedure it develops endocrine pancreas like characteristics when islets are placed into the device taking
over normal glucose control. A key feature of the device is its ability to stimulate natural microvessel
development, thought to be essential for long-term survival and function of therapeutic cells.
Further to its news release of May 8, 2015, Sernova Corp. has completed a non-brokered private placement of 8,888,889 units at 18 cents per unit for gross proceeds of $1.6-million.
"We are pleased with the very strong interest from investors in Sernova's future in the regenerative medicine space as indicated by the oversubscription of the private placement," said Dr. Philip Toleikis, President and CEO of Sernova. Net proceeds from the private placement will be used to fund Sernova's regenerative medicine clinical program and collaborations utilizing the Company's platform technology to treat diabetes and other serious disease conditions, as well as for general corporate purposes.
Each Unit issued in the private placement consisted of one common share and one common share purchase warrant, with each warrant exercisable into one share at a price of $0.30 per share for a 24 month exercise period, subject to abridgement of the exercise period (after the expiry of the 4 month hold period) on 30 days notice to holders in the event that the twenty-day volume weighted price of the shares exceeds $0.50. Further, in respect of a portion of the private placement, the Company compensated finders by way of cash commissions of $26,451.18 and 137,151 non-transferable finder warrants, each such finder warrant having the same terms as the Unit warrants.
All securities issued in connection with the private placement will be subject to a statutory hold period of four months. This news release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933 or any state securities laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act of 1933 and all applicable state securities laws, or an applicable exemption from registration requirements.
Appointment of CFO
Sernova is also pleased to announce that Ralph Deiterding, CPA, CA, CMA has joined the Company as its Chief Financial Officer. Mr. Deiterding is a finance veteran with over 20 years of experience, primarily in senior finance roles at Toronto Stock Exchange listed software vendors. Prior to joining Sernova, Mr. Deiterding was Director of Finance & Accounting at Lexington Park Real Estate Capital Inc., a real estate asset management firm. Previously, he held the positions of Corporate Controller for MKS Inc. and Controller at Workbrain Corporation, both software vendors listed on the Toronto Stock Exchange. While at Workbrain, he was an instrumental member of the team that completed the company's C$40 million Initial Public Offering. While at MKS, he was highly involved in the transition when the company was acquired by Parametric Technology Corporation, a NASDAQ listed software vendor, for C$292 million.
"We are delighted to have Mr. Deiterding on board as Sernova's CFO," stated Dr. Philip Toleikis, President and CEO of Sernova. "Given his expertise with Toronto Stock Exchange listed companies as well as his extensive experience with successful public market transactions, we are confident that he will make a great contribution to Sernova."
Sernova wishes to thank Mr. David Garland, the outgoing interim CFO, for his outstanding service to the Company.