Sernova Biotherapeutics secured a CAD$4 million term loan from Navigate Private Yield Fund LP III. The loan, which matures on April 16, 2026, or earlier upon certain monetization transactions, will support working capital and general corporate purposes. This financing follows over CAD$10 million raised in recent months as Sernova prepares for its final human donor islet clinical trial (Cohort C) for its Cell Pouch Bio-hybrid Organ in type 1 diabetes (T1D) patients.
This funding is crucial for Sernova’s advancement toward late-stage clinical trials. Securing non-dilutive funding allows the company to maintain its financial flexibility while pursuing a potentially groundbreaking treatment for T1D. The progress toward Cohort C signifies a pivotal step toward demonstrating the efficacy and safety of the Cell Pouch Bio-hybrid Organ, potentially positioning it as a leading therapy in the T1D treatment landscape. This development could attract further investment and partnerships, accelerating the path to commercialization.
The loan carries a 14.25% annual interest rate after an initial six-month period with a fixed interest of $400,000. Notably, a Sernova board member, Dr. Steven Sangha, personally guaranteed the loan and received compensation warrants as consideration for the associated risk. This personal backing underscores confidence in the company’s potential and aligns the board’s interests with the success of the Cell Pouch technology.
This financing positions Sernova to focus on its clinical trial execution. Positive results from Cohort C would validate the Cell Pouch technology, potentially transforming T1D treatment and significantly impacting the lives of patients. This successful funding round signals growing confidence in Sernova’s approach and indicates positive momentum for its clinical development program.
Jon Napitupulu is Director of Media Relations at The Clinical Trial Vanguard. Jon, a computer data scientist, focuses on the latest clinical trial industry news and trends.
