Sernova and Seraxis Raise $11.2M, Merge as BetaNova Biotherapeutics
The two biotech firms closed an $11.2M convertible note round to fund their merger and advance a Type 1 diabetes cell therapy toward clinical trials.
Sernova Biotherapeutics and Seraxis Holdings have closed an US$11.2 million non-brokered convertible note financing, exceeding their initial US$10 million target, as the two companies move forward with a planned merger that will create a new entity called BetaNova Biotherapeutics, Inc.
The combined company is expected to accelerate development of a cell therapy aimed at treating Type 1 diabetes, with a Phase 1/2 clinical trial positioned as a near-term milestone. The merger brings together the complementary platforms of Toronto-based Sernova, listed on the TSX, OTC markets, and Frankfurt Stock Exchange, and Maryland-based Seraxis.
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The financing, structured as convertible notes, was completed on a non-brokered basis, meaning the companies raised the capital directly without engaging an underwriting syndicate — a structure that typically allows faster execution and lower issuance costs. Exceeding the stated target by roughly $1.2 million signals stronger-than-expected investor appetite for the combined venture's diabetes cell therapy pipeline.
Type 1 diabetes remains a significant unmet medical need globally, and cell-based replacement therapies — which seek to restore the body's natural insulin production rather than manage symptoms — have drawn growing investor and clinical interest. BetaNova's near-term push toward a Phase 1/2 study would mark a key inflection point for the platform's clinical validation.
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