Sernova and Seraxis Close US$11.2 Million Financing to Fund Merger to Become BetaNova Biotherapeutics and Advance Type 1 Diabetes Cell Therapy Into Near Term Phase 1/2 Clinical Trial

TORONTO and GERMANTOWN, Md., Oct. 05, 2026 (GLOBE NEWSWIRE) -- Sernova Biotherapeutics Inc. (“Sernova”) (TSX: SVA) (OTC: SEOVF) (FSE/XETRA: PSHO) and Seraxis Holdings, Inc. (“Seraxis”) today announced the closing of the previously announced targeted US$10 million non-brokered convertible note financing in connection with their proposed merger (the "Merger") to form BetaNova Biotherapeutics, Inc. (“BetaNova”).

The US$11.2 million financing into Seraxis includes participation from insiders, Dr. Steven Sangha / Arlo Investments, Sernova management; Jonathan Rigby CEO, James Parsons CFO, Marylyn Rigby CCO, and David Burke VP IR, as well as Seraxis management; Will Rust Ph.D. CEO, and Carole Welsch Ph.D. COO. Existing shareholders and new investors also participated in the financing.

Proceeds from the financing are expected to support:

• cGMP manufacturing of SR-02, allogeneic stem cell-derived pancreatic islet cells;
• Enrollment of patients with T1D in Q4 for Phase 1 / 2 clinical trial;
• First patient dosing of SR-02 in Phase 1/2 clinical trial in Q1 2027 under an FDA-cleared IND with initial clinical data anticipated in H1 2027;
• Nasdaq listing readiness targeted for Q1 2027, subject to satisfaction of applicable listing requirements and approvals; and
• Advancement of SR-03, the next-generation gene-edited pancreatic islet cell program targeting immune evasion, toward an IND submission in the second half of 2027.
  

“This financing puts capital directly behind the milestones we have outlined for BetaNova as we passionately advance towards a potential functional cure for people living with T1D,” said Jonathan Rigby, President and Chief Executive Officer of Sernova. “With the financing now closed, we believe BetaNova is positioned to successfully compete with other companies in the T1D cell therapy space by entering the clinic in the near term. Our focus is on execution, while deploying capital efficiently.”

“Closing the financing provides the resources to advance the manufacturing activities required to support SR-02 islet cells and prepare for initiation of the Phase 1/2 clinical trial,” said Will Rust, Ph.D., President and Chief Executive Officer of Seraxis. “As we work toward completion of the Merger, our teams are aligned around a shared mission, a clear development strategy and a defined set of milestones for 2026 and 2027.”

Proposed Merger

Sernova and Seraxis entered into a definitive merger agreement on September 7, 2026, to form BetaNova, combining Seraxis’ stem cell-derived pancreatic islet programs and cGMP manufacturing capabilities with Sernova’s Cell Pouch Bio-hybrid Organ. The completion of the Merger is subject to required approvals and customary closing conditions. Upon completion, each of Sernova and Seraxis shareholders are expected to collectively own approximately 50% of BetaNova on a non-diluted basis.

Noble Capital Markets, Inc. is acting as exclusive financial advisor to Sernova in connection with the proposed Merger.

About the Financing

The US$11.2 million financing consists of convertible notes and common stock purchase warrants of Seraxis issued on a non-brokered basis. Upon completion of the Merger, the notes are expected to automatically convert into common stock of BetaNova.

ABOUT BETANOVA BIOTHERAPEUTICS, INC.

BetaNova Biotherapeutics, Inc. is the proposed combined company of Sernova Biotherapeutics Inc. and Seraxis Holdings, Inc. Subject to completion of the proposed transaction, BetaNova will be a clinical-stage regenerative medicine company focused on advancing cell-replacement therapies for type 1 diabetes. BetaNova will combine Seraxis' stem cell-derived islet cell and cGMP manufacturing platform with Sernova's Cell Pouch Bio-hybrid Organ.

ABOUT SERNOVA BIOTHERAPEUTICS INC.

Sernova Biotherapeutics Inc. is a clinical-stage company developing a regenerative medicine solution for T1D that combines its Cell Pouch implantation device, deep clinical experience in the engraftment of functional pancreatic cells, and therapeutic cells to create a Bio-hybrid, functional surrogate endocrine organ.

ABOUT SERAXIS HOLDINGS, INC.

Seraxis Holdings, Inc. develops stem cell-derived pancreatic islets under cGMP manufacturing processes. Seraxis’ mission is to demonstrate safety and potency of its islets in T1D patients without immune suppression therapy. To accomplish this goal, its lead allogeneic product, SR-02, is paired with an immune tolerizing strategy. Seraxis’ follow-on product SR-03 adds gene edits to SR-02 that increase compatibility with the host and potentially enhance long-term engraftment without immune suppression.

For Further Information Contact:

Investor Relations
David Burke
Vice President, Investor Relations
Sernova Biotherapeutics Inc.
(917) 751-5713
David.Burke@sernova.com

Media
Gloria Gasaatura
VP, LifeSci Communications
SernovaPR@lifescicomms.com

Forward-Looking Information

This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. Particularly statements and information regarding the proposed Merger of Sernova and Seraxis, the anticipated formation of BetaNova, the anticipated use of proceeds from the financing, manufacturing of SR-02, the timing of patient dosing and availability of clinical data, development of SR-03, and the anticipated completion of the Merger. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “budget”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projection”, “prospects”, “strategy”, “intends”, “anticipates”, “does not anticipate”, “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information.

Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. These statements include, without limitation, statements regarding the receipt, in a timely manner, of shareholder, court and regulatory approvals in respect of the Merger, the expected closing date for the Merger and BetaNova’s leadership, business prospects and operations following closing of the Merger and the anticipated use of proceeds and results thereof from the non-brokered financing. Undue reliance should not be placed on forward-looking information. The forward-looking information in this press release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Further, forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks relating to regulatory interactions, manufacturing, patient recruitment, clinical development, financing requirements, completion of the proposed Merger and satisfaction of applicable Nasdaq listing requirements.

Additional information about the risks and uncertainties of Sernova’s business and material risk factors or assumptions on which information contained in forward-looking information is based is provided in Sernova’s disclosure materials, including Sernova’s most recently filed news release, annual information form and any subsequently-filed interim management’s discussion and analysis, which are available under our profile on SEDAR+ at www.sedarplus.ca. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date of this news release and is subject to change after such date. Sernova disclaims any intention or obligation or undertaking to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities law.