Stem Cell Therapeutics Completes $33 Million Private Placement

Toronto, Canada – December 13, 2013 – Stem Cell Therapeutics Corp. (TSX-V: SSS; OTCQX: SCTPF), an immuno-oncology company developing cancer stem cell-related therapeutics, is pleased to announce that it has raised gross proceeds of $33 million through a private placement of units. The financing proceeds will be used to advance the Company’s CD47 cancer stem cell program through IND-enabling studies, manufacturing and phase 1 clinical trials. “The transformation of Stem Cell Therapeutics into a global competitor in the immuno-oncology space requires a value-driving asset backed by world class science, access to significant capital, experienced leadership, as well as a strong and knowledgeable investor base. As of today we have all those components,” commented the company’s CEO, Dr. Niclas Stiernholm.

The financing was led by a prominent U.S. healthcare fund, with participation from several other premier U.S. healthcare institutional investors, including Special Situations Funds, Ridgeback Capital, Merlin Nexus, Sabby Capital, venBio, Opaleye Management and HSMR Advisors. Bloom Burton & Co. acted as lead agent for the private placement. ROTH Capital Partners, LLC acted as placement agent in the United States.

“The significant investment and validating sponsorship from these reputable life science-focused funds is the result of a concentrated effort to introduce the U.S. investment community to our CD47 immune checkpoint program since the acquisition of Trillium Therapeutics in April 2013,” added Dr. Stiernholm.

In connection with the offering, the Company issued 157,142,858 units at a price of $0.21 each. The units consisted of either one common share and three-quarters of a common share purchase warrant (“Common Share Units”) or one Series 1 Non-Voting First Preferred Share and three-quarters of a common share purchase warrant (“Preferred Share Unit”). Of the total Units issued, 79,247,693 units were Common Share Units and 77,895,165 units were Preferred Shares Units. Each whole warrant entitles the holder to purchase one common share at a price of $0.28 at any time prior to expiry on December 13, 2018. Following the offering, the Company has 121,752,380 common shares issued and outstanding (144,031,618 on a fully diluted basis).

The Company paid its agents a commission of 6% of the gross proceeds of the offering (excluding subscription proceeds from certain President’s list subscribers), or $1,053,116, and issued a number of compensation warrants equal to 6% of the units sold in the offering (except units sold to President’s list subscribers), or 5,014,839 compensation warrants. Each compensation warrant entitles the holder to acquire one common share at an exercise price of $0.21 prior to expiry on December 13, 2015.

All securities issued under the offering (including the compensation warrants), in Canada are subject to a four month hold and resale restrictions under Canadian securities law, and in the United States are subject to statutory resale restrictions under U.S. securities laws. All securities issued under the offering are also subject to a four month hold imposed under the policies of the TSX Venture Exchange.

Subscribers who purchased Preferred Share Units and certain subscribers who purchased Common Share Units also agreed to be subject to restrictions on the conversion and exercise of securities of the Company convertible in common shares. Such subscribers cannot convert or exercise securities of the Company convertible into common shares if, after giving effect to the exercise of conversion, the subscriber and its joint actors would have beneficial ownership or direction or control over common shares in excess of 4.99% of the then outstanding common shares. This limit can be raised at the option of the subscriber on 61 days prior written notice: (i) up to 9.99%, (ii) up to 19.99%, subject to stock exchange clearance of a personal information form submitted by the subscriber, and (iii) above 19.99%, subject to stock exchange approval and shareholder approval.

Subject to receipt of any required regulatory approvals, subscribers who purchased a minimum of 10% of the securities sold under the offering have been given rights to purchase securities of the Company in future financings to enable each such subscriber to maintain its percentage holding in the Company for so long as the subscriber holds at least 10% of the outstanding common shares on a fully-diluted basis.

Click here to view the full news release online.

Ontario Bioscience Innovation Organization Releases Report on Benefits of Adopting Innovative Technology in Healthcare

PRESS RELEASE Realizing the Promise of Healthcare Innovation in Ontario – Increasing Value for the Patient, Health System and Economy

Toronto, Ontario, December 11, 2013 – Ontario’s healthcare system faces the dual challenge of a fiscally unsustainable rise in healthcare costs, currently in excess of $48 billion, and the rise of chronic disease and related co-morbidities. Ontario Bioscience Innovation Organization’s report, “Realizing the Promise of Healthcare Innovation in Ontario”, recommends policy avenues that put innovative technologies to work to address these and other system-wide issues.

The report captures missed opportunities and illustrates the need for a process that addresses adoption of new technologies in order to catalyze commercialization for the therapeutics, medical devices, diagnostics and health information technology sectors while strengthening the province’s capacity to deliver cost-effective care for patients as intelligently and innovatively as practicable. The outcome will be positive change to the economic picture and to the health and prosperity of Ontarians. A full copy of the report is available at www.obio.ca.

“Ontario faces economic and healthcare challenges common to many jurisdictions around the world,” said Robert Hardt, President and CEO, Siemens Canada Limited. “The OBIO report challenges old ways of thinking about innovation adoption and illustrates both the need for and the benefits of joining forward-thinking policymakers in implementing changes that will reduce overall costs improve patient outcomes and stimulate job creation across the public and private healthcare sectors.”

Gail Garland, President and Chief Executive Officer, Ontario Bioscience Innovation Organization said, “OBIO has led a team of amazing and dedicated industry stakeholders, health economists from CLEAR and researchers from Massey College’s Innovation Cell. We are pleased to release a report providing thought leadership on developing a transparent commercial pathway that will allow health technology and bioscience companies to address Ontario’s healthcare challenges. The health and economic benefits from adopting healthcare innovations will accrue to all Ontarians.”

The OBIO Innovation Adoption Steering Committee includes the following leading healthcare companies: Amgen Canada Inc., Eli Lilly Canada Inc., McKesson Canada Inc., Pfizer Canada Inc., and Siemens Canada Ltd. Other leading supporters include Astra Zeneca Canada, Baxter Canada, CML HealthCare, InterMune Canada, Janssen Canada, Medtronic Canada, Merck Canada, Novadaq and Valeant Canada.

Click here to view the full press release.

Realizing the Promise of Healthcare Innovation in Ontario

The OBIO® Innovation Adoption Initiative is a product of the Ontario Bioscience Economic Strategy Team (OBEST®), an initiative launched by OBIO® to address the challenges faced by Ontario’s human health technology and bioscience industry. Its goal is to recommend policy avenues that catalyze commercialization for the therapeutics, medical devices, diagnostics, and health information technology (health IT) sectors while strengthening the province’s capacity to deliver cost-effective care for patients and caregivers as intelligently and innovatively as practicable. Click here to view the full report online.

Ontario Bioscience Innovation Organization Announces Election of Arun Menawat, Jim Graziadei and Richard Meadows to its Board of Directors

PRESS RELEASE Toronto, Ontario, December 9, 2013 – Ontario Bioscience Innovation Organization (“OBIO®”), a non-profit organization that is Ontario’s leading advocate for the life science sector, announces the election of three new members to its Board of Directors: Arun Menawat, Jim Graziadei, and Richard Meadows.

“OBIO welcomes three new industry thought leaders to our Board of Directors,” said Dr. David Young, Chair of the OBIO Board of Directors. “We look forward to their contribution to OBIO’s efforts to engage stakeholders in the development of a fully functioning human health technology and bioscience ecosystem for the benefit of Ontarians and people of the world.”

“I look forward to being part of the important work of the Ontario Bioscience Innovation Organization,” said Dr. Arun Menawat, President and Chief Executive Officer of Novadaq Technologies Inc. “OBIO’s impressive team and dedication to enabling the development and commercialization of life science technologies is helping to ensure the continued growth of Ontario’s globally competitive bioscience sector.”

In addition, OBIO is pleased to announce that Jung-Kay Chiu, Partner, Norton Rose Fulbright, will serve as Secretary for the OBIO Board of Directors.

Dr. Arun Menawat is President and Chief Executive Officer of Novadaq Technologies Inc. (NASDAQ: NVDQ, TSX: NDQ) and will serve as Vice-Chair of the OBIO Board. Dr. Menawat has been Novadaq’s President and CEO since April 2003. Previously, he held senior management positions at Cedara Software, Tenneco, Inc. and Hercules, Inc. His educational background includes a Ph.D. in Chemical Engineering from the University of Maryland, College Park, MD, including research in Biomedical Engineering from the National Institute of Health, Bethesda, MD. Dr. Menawat also earned an Executive MBA from the J.L. Kellogg School of Management, Northwestern University in Evanston, IL.

Mr. Jim Graziadei is Senior Vice President of the Siemens Canada Healthcare Sector and will serve as a Director of the OBIO Board. Mr. Graziadei is responsible for the overall strategic direction and management of the Siemens Healthcare business in Canada, including the Imaging & Therapy, Clinical Products and Diagnostics divisions. Providing a full range of integrated services including multi-vendor solutions, asset planning and management, Siemens is a leading healthcare supplier and consultant in the field of image management and networking systems. Mr. Graziadei has more than 20 years of sales, marketing and management experience. Most recently he was General Manager of Siemens Diagnostics in Canada and was responsible for achieving strategic and financial goals by developing a high performance structure and culture. Mr. Graziadei holds a Bachelor of Science in Business Administration from California State University in Sacramento, CA.

Mr. Richard Meadows has been one of two managing partners at CTI Life Sciences Fund. He was formerly a successful investor at Vantage Point Venture Partners and CDP Capital Technology Ventures. Mr. Meadows was on the boards as an early investor in Enobia Pharma, which sold for $1.1 billion to Alexion Pharmaceuticals, and TargeGen which sold in June 2010 to Sanofi for $560 million. Mr. Meadows has extensive experience in operations, general management in biopharmaceuticals, and finance. He has made and managed investments in the cancer, cardiovascular, auto-inflammatory and immunology areas. Mr. Meadows was recently recognized by Forbes as one of the top 10 life science investors in 2013.

Mr. Jung-Kay Chiu practises in all areas of intellectual property law, with a focus on intellectual property acquisition, protection and exploitation in the field of biotechnology and medical devices. Mr. Chiu’s practice includes drafting and prosecuting patent applications, industrial designs and trade-marks, as well as patent licensing and other commercial transactions relating to intellectual property. Mr. Chiu is also routinely involved in preparing patent-related due diligence reports and patentability, infringement and validity opinions. Mr. Chiu joined the Norton Rose Toronto office in 2003 after practising corporate commercial law and intellectual property law with another major law firm in Canada. His technical experience includes conducting post-graduate research in molecular biology at the University of Toronto, and his technical background includes genetics, molecular biology, biotechnology and biochemistry. Mr. Chiu is Toronto Chair of the Norton Rose Intellectual Property Group.

Click here to view the full press release.

OBIO Chair, Dr. David Young Opens OBIO AGM December 5, 2013

For the 2013 (20131205) OBIO 5th AGM. Dr. David Young, Board Chair, Ontario Bioscience Innovation Organization (OBIO®)

Opening remarks.

Good Afternoon-thank you for coming to our fifth annual general meeting. When I was talking to Arun Menawat, who will become the vice chairman of OBIO, about joining the board we covered a lot of ground. I have been thinking about that conversation ever since and one the striking thing about it was the common ground we shared.

We are both extremely grateful that this country has been so welcoming to new comers. We marveled at how this environment has given us the opportunity to succeed in an area that we care so passionately about. We are appreciative of all the help we have received from those around us. Equally, we felt we wanted to help improve this province and this country which has been so generous to us.

I think we all share this common ground: we are extremely lucky to be here in Ontario, we all have an ambition to make the world a bit better for having received opportunities not universally available, we want to help others improve their own circumstances, and we earn our livelihoods in human life sciences where this common ground is the most salient.

I think this is why most of us are here tonight. Coming together with OBIO means something. OBIO is the common ground for creating a change that will amplify the advantages in this province that we have all enjoyed.

As I reflected on why this province and country has been so fortunate and created the circumstances I talked about I realized that it was because we provide a welcome port for new ideas-taking the best from all of us and putting them to work.

We have come together to change the trajectory of this province to create a bed rock of economic growth that will improve the future. Tangibly this is better jobs, higher incomes, better services, more self fulfillment and more opportunities for ourselves and the next generations.

In order to accomplish this goal the best ideas have to come to the top.

We work in an area where science underpins what we do. The Scientific Method is one of the crown jewels of western intellectual achievement and one of the reasons that we enjoy the standard of living that we do. A key feature of this, as is well known to everyone in the audience, is the debate and spirit of inquiry leading to data collection and ultimately a conclusion. This is how we determine what the best ideas are in science and we can use it to advance our goals in developing a life sciences economy.

OBIO has been the place where all voices can be heard because we need to have the best ideas come forward.

We want to hear from everyone-we don’t know where the breakthrough ideas are going to come from. This is where honest debate can take place. This is where people can put aside their imperatives of their day jobs and put their minds to creating the high tide that lifts all boats. This is where thought leads to action.

Obviously we have a lot further to go in this collective journey but as I look around I can see a lot of like minded people. Look around at this great diversity of people and organizations. From those who deliver healthcare on the front lines like St Michaels and William Osler hospital, CCAC, Plexxus, to our universities like UofT and York U; tech transfer offices like Techna, and the Lunenfeld; municipal government like Mississauga and provincial governments, trade organizations like TBOT, biotech companies and multinational drug and device companies.

This speaks well of OBIO for representing the collective interests and efforts of engaged stakeholders working towards a common goal – the creation of a fully functioning life sciences ecosystem.

I think it’s fantastic that OBIO can provide the big tent for the kind of brass tacks discussions that lead to action. I think one of the reasons that thought leaders have gravitated to OBIO is that we are not a debating club. We don’t do studies just to fill dusty bookshelves. We harness great ideas to advance our goals. As in science we use data to parse out the great ideas from those just shouted through the loudest megaphones, or those that have narrower selfish aims, or those that have proven to have failed.

What a renaissance in thinking-Let’s try to make people healthier and happier. Let a million ideas bloom in a thousand voices. Let’s pick the best ones that help us make this a better place to live. Let’s export it so that the world can enjoy the benefits of our high water mark, too.

This high tide closes the circle for us: we use our natural advantages such as in our research and our healthcare system to commercialize breakthroughs that lead to better health outcomes. This attracts capital investments because selling our solutions in healthcare to the world creates high returns. We create companies and jobs which improve the standard of living in the province. This higher level of economic activity allows us to invest in research, healthcare and education to fuel the cycle of growth and prosperity.

I think that’s our secret sauce as a society-our open mindedness to good ideas and the ability to pick the best ones based on evidence. I think most of us are here today because OBIO is the best chance for helping Ontario get to the next level. This is our common ground.

I thank you for being here today and all your help and encourage you to continue with our journey.

Click here to view the full opening remarks.

Ontario Bioscience Innovation Organization Announces a Call for Life Sciences Companies to Apply for the OBIO Capital Access Advisory Program

PRESS RELEASE Toronto, Ontario, December 5, 2013 – Ontario Bioscience Innovation Organization (“OBIO®” or “the Organization”), a non-profit organization that is Ontario’s leading advocate for the life science sector, is pleased to announce a call for applications for the second cycle of the OBIO Capital Access Advisory Program (CAAP™).

The OBIO CAAP is an industry-led program that works to improve access to capital for Ontario bioscience companies. It is a unique program that provides companies with mentoring, strategic guidance and access to the networks from both senior members of the life science venture capital community and senior advisors from industry to prepare companies to seek capital. Through the OBIO CAAP, the Organization helps to advance the development and commercialization of medical devices, drugs and other life science technologies that can improve the lives of people in Ontario and around the world.

“The goal of the OBIO Capital Access Advisory Program is to ensure that Ontario’s human health technology companies can continue to bring their remarkable technologies to market,” said Gail Garland, President and Chief Executive Officer of OBIO. “I would like to thank the Government of Ontario and Miller Thomson for supporting this important program, and also thank all of the venture capital investment community members and industry advisors who contributed to the pilot year of the OBIO CAAP. We look forward to continuing and expanding this important initiative in 2014 and beyond.”

"Miller Thomson is a proud supporter of OBIO’s Capital Access Advisory Program,” said Robert M. Stewart, Partner, Miller Thomson LLP. “As a firm, we are excited to be involved in a program that helps great ideas and great entrepreneurs get investment ready. I wish all of the initial CAAP companies much success, and look forward to the continuation of the program in future years.”

Initiated in 2013, the OBIO Capital Access Advisory Program operates downstream from other programs and targets the critical issue of access to capital at the “Series A” to later stages of venture financing. All high-potential bioscience companies based in Ontario that meet the requirements listed below are encouraged to apply.

OBIO CAAP Eligibility

  • Companies focused on developing life science products or services including but not limited to therapeutics, medical devices, diagnostics, healthcare services or healthcare information technologies, and
  • Enterprises that have already raised initial capital and are committed raising an additional round of financing in the next 12 to 18 months.

Additional information on the OBIO CAAP can be found at www.obio.ca. Applications are available by sending an email to CAAP@OBIO.ca. Applications must be received by January 20, 2014 at 12 pm ET.

Click here to view the full press release.

Sernova Corp Engages Carson Seabolt and Network IR

November 27, 2013, 6:00 a.m. EDT LONDON, ONTARIO (Marketwire – November 27, 2013) - Sernova Corp (TSX-V: SVA), today is pleased to announce it has engaged Carson Seabolt and Network IR (“Network”) to develop and execute a comprehensive investor communications program to raise awareness of the Company within North American and International investment communities.

“Carson Seabolt and his team at Network IR are well-respected and will assist in the capital and institutional markets as we approach important Company milestones including anticipated clinical trial results in 2014,” said Dr. Philip Toleikis, Sernova Corp Chief Executive Officer.

“Our team is very excited to begin working with Sernova and its Management. It is a very rare opportunity to find a clinical-stage company that is working towards building such a worthwhile and potentially game-changing portfolio of products. I feel strongly that Dr. Toleikis and the entire Sernova team have the ability to deliver to the market, future patients and society a better way of treating what were once considered lifelong illnesses,” said Andrew Mugridge of Network IR.

“There is a lot to like about Sernova at this exciting juncture, and CEO Philip Toleikis is committed to ensure Sernova’s story is told to an ever-discerning retail audience. Attracting Carson Seabolt and NIR is a testament to Dr. Toleikis’s intuitive understanding that capital markets require an engaging, supportive retail ecosystem in the fruition of great projects. I credit Philip’s commitment to his stakeholders as we march into a promising 2014,”said Ray Matthews, Strategic Advisor.

Under the terms of the Company's agreement with Network IR, the Company will pay to Network a cash fee of $6,000 per month for six months and grant to Network a total of 300,000 incentive stock options, each option being exercisable, once vested, into one common share of the Company at a purchase price of $0.15 per share. The options shall vest in four equal quarterly installments, and will be governed by the Company's option plan and the policies of the TSX Venture Exchange.

Click here to view the full news release online.

Interview: Gail Garland CEO, Ontario Bioscience Innovation Organization, Canada

The CEO of OBIO discusses Ontario’s challenges and opportunities in life sciences, highlighting some of the key initiatives that the organization is taking to help local companies bridge the gap between research and commercialization. What was your main objective in founding OBIO back in 2009?

The main motivation for founding OBIO was the impetus provided by a group of CEOs in Ontario’s bioscience industry who saw the need for the development of an organization that focused on policy and advocacy. It also needed to represent the needs of the industry in order to grow Ontario’s bioscience ecosystem and advocate for the types of policy that would allow that growth to happen. This was in the middle of 2009, in the depths of a recession. Companies were operating with little cash on hand, and there was no path out without having some policy and advocacy support to help them complete their development cycles.

Click here to view the full interview.

Sernova Receives Patent Allowance for Therapeutic Immune Privileged Cell Technologies

July 09, 2013 LONDON, ONTARIO (Marketwire - July 9, 2013) - Sernova Corp (TSX-V: SVA), today announced the Japan Patent Office has issued a Notice of Patent Allowance to Sernova for a patent entitled "The production of a biological factor and creation of an immunologically privileged environment using genetically altered Sertoli cells."

When transplanted into a recipient, Sertoli cells provide an immune privileged environment for therapeutic cells without the need for anti-rejection drugs. The claims of this patent relate to Sertoli cells themselves which can release factors in the body to treat a range of chronic diseases such as diabetes, Parkinson's disease, various cancers, hemophilia B and other blood diseases.

"This patent allowance further strengthens Sernova's intellectual property position and provides Sernova with the unique ability to use cells with therapeutic capabilities that are also naturally protected from immune system attack," stated Dr. Philip Toleikis, Sernova's President and CEO. "We envision our Cell Pouch(TM) transplanted with these immune privileged Sertoli cells and releasing the correct replacement factor for the treatment of a variety of diseases, without the need for anti-rejection medications. We believe such a product would be a significant advancement in the cell-based treatment of deficiency diseases."

Sernova's medical collaborators have presented evidence at leading scientific conferences demonstrating that the Cell Pouch(TM) is a safe and effective platform for the delivery of factors such as insulin from therapeutic cells. Sernova is developing the Cell Pouch(TM) as an enabling platform to treat multiple chronic debilitating diseases with immune protected, therapeutic cells and is currently evaluating the safety and efficacy of the Cell Pouch(TM) in human clinical trials for diabetes.

Click here to view the full news release online.

Sernova Receives Patent Allowance for Therapeutic Cell Immune Protection Technology

June 24, 2013 LONDON, ONTARIO (Marketwire - June 24, 2013) - Sernova Corp. (TSX-V: SVA), today announced that the Australian Patent Office has issued a Notice of Patent Allowance to Sernova for a patent entitled "Adult sertoli cells and uses thereof".

Importantly, sertoli cells provide an immune privileged environment to protect donor therapeutic cells from immune system attack. When transplanted into Sernova's Cell Pouch(TM) with therapeutic cells, a safe, protected and efficacious environment is provided for therapeutic cells such as insulin-producing islets for the treatment of diabetes. The allowance of this patent will provide Sernova with patent protection through 2027 and similar patent applications have been filed in multiple countries around the world.

"The patent allowance strengthens Sernova's broad patent portfolio related to immune protection of therapeutic cells," stated Dr. Philip Toleikis, Sernova's President and CEO. "We believe the Cell Pouch(TM), proven to provide an ideal non-inflammatory, biocompatible environment, rich in matrix and microvessels for therapeutic cells, combined with sertoli local immune protection, provides the best combination of cell-based technologies to treat chronic diseases without the need for continuous anti-rejection drugs." Toleikis continued, "This strengthened patent portfolio has enabled us to expand our partnering and development opportunities as we continue to advance our Cell Pouch System(TM)."

Sernova has presented evidence at leading scientific conferences demonstrating that the Cell Pouch(TM) can be used as a safe and effective platform for the delivery of insulin from both autograft (self) and allograft (donor) islets to restore glucose control in stringent preclinical models of diabetes using the product scaled for humans. Sernova is currently evaluating the safety and efficacy of the Cell Pouch(TM) in humans in the first study of its kind in the world at the University of Alberta with Dr. James Shapiro as the principal investigator.

As the Company progresses, Sernova plans to explore the additional utility of the Cell Pouch(TM) as an enabling platform for a range of therapeutic cell types with the potential to treat multiple chronic debilitating diseases with broad unmet medical need.

Click here to view the full news release online.