Sernova Biotherapeutics (SVA) investor relations material

Deal rationale and strategic fit

• Merger creates BetaNova Biotherapeutics, combining proprietary insulin-producing cell lines, gene-edited immune-evading cells, and a clinically validated implantable device for type 1 diabetes therapy.

• Integration enables a coordinated clinical program, leveraging in-house cGMP manufacturing and research labs.

• Addresses key challenges in islet cell therapy, including immune evasion and scalable manufacturing.

• Leadership continuity with executives from both companies joining BetaNova.

• The merger is structured as a true merger of equals, with each company's shareholders owning approximately 50% of the new entity.

Financial terms and conditions

• Up to $10 million in non-brokered convertible note financing has been secured, primarily from insiders, to fund key milestones.

• Convertible notes will automatically convert to BetaNova common stock upon merger close; the round remains open until the end of September 2026.

• Financing is structured to minimize dilution for current shareholders.

• Break fee of US $5 million payable by either party in certain circumstances.

• Upon merger completion, convertible notes convert into non-voting common stock of BetaNova.

Synergies and expected cost savings

• Integration of cell source, manufacturing, and device technology under one roof streamlines development and reduces redundancies.

• Manufacturing process is more efficient and stable compared to competitors, reducing waste and improving scalability.

• Combination aims to reduce or eliminate chronic immunosuppression for patients.