Scinai Immunotherapeutics (NASDAQ: SCNI), a biopharmaceutical company focused on the development of inflammation and immunology (“I&I”) biological products and on providing contract development and manufacturing organization (“CDMO”) services through its Scinai Bioservices business unit, has received a nonbinding letter of intent (“LOI”) from the European Investment Bank (“EIB”). According to the announcement, the LOI contains terms for converting EIB’s loan of approximately $27.6 million into equity in the form of prefunded warrants; the warrants, which will be exercisable into American Depositary Shares (“ADSs”), represent 19.5% of the fully diluted capital of the company as well as capped variable return mostly in the form of a royalty on the company’s revenues. “The company believes that this loan-to-equity conversion would immediately eliminate the shareholders’ deficit of $4.5 million and create an estimated shareholders equity surplus of approximately $14.5 million,” stated the press release. “The company retained Deloitte to prepare a white paper analyzing the accounting impact of the loan-to-equity conversion. The accounting analysis is expected to be reflected in the company’s Q3 2024 financial reports. . . . The company believes that these terms are very favorable to the company and its shareholders, and that the substantial reduction in its long-term liabilities should improve its standing in the financial community.”
To view the full press release, visit https://ibn.fm/HGgmx
About Scinai Immunotherapeutics Ltd.
Scinai Immunotherapeutics is a biopharmaceutical company with two complementary business units: one focused on in-house development of inflammation and immunology (“I&I”) biological therapeutic products beginning with an innovative, derisked pipeline of nanosized VHH antibodies (NanoAbs) targeting diseases with large unmet medical needs, and the other a boutique CDMO providing biological drug development, analytical methods development, clinical GMP manufacturing, and preclinical and clinical trial design and execution services to early-stage biotech companies. For more information, visit the company’s website at www.Scinai.com.
NOTE TO INVESTORS: The latest news and updates relating to SCNI are available in the company’s newsroom at https://ibn.fm/SCNI
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