JERUSALEM, March 5,
2025 /PRNewswire/ -- Scinai Immunotherapeutics Ltd.
(Nasdaq: SCNI) ("Scinai" or the "Company"), a biopharmaceutical
company focused on developing inflammation and immunology (I&I)
biological products and providing CDMO services through its Scinai
Bioservices business unit, announced that it has entered into a
Standby Equity Purchase Agreement (the "SEPA") with YA II PN, Ltd.
("Yorkville"), a fund managed by Yorkville Advisors Global, LP.
Under the terms of the SEPA, Scinai has the right, but not
the obligation, to sell up to $10
million (the "Commitment Amount") of its American Depository
Shares ("ADSs"), each representing 4,000 ordinary shares, to
Yorkville at any time during the three-year period following the
execution date of the SEPA and following the effectiveness of a
registration statement filed with the Securities and Exchange
Commission registering the ordinary shares represented by the ADSs
issuable pursuant to the SEPA. Sales to Yorkville under the SEPA
are subject to a beneficial ownership cap of 9.99% of Scinai's
share capital at any one time, along with other restrictions and
conditions outlined in the SEPA.
The purchase price of the ADSs sold to Yorkville will be at a 3%
discount to the lowest daily volume-weighted average price of the
ADSs during the three consecutive trading days commencing on the
trading day of the delivery of an advance notice by
Scinai.
Scinai retains full control over the timing and amount of any
sales to Yorkville, with no obligation to utilize any of the
$10 million available under the SEPA.
Advances cannot be initiated by Yorkville, and there are no minimum
commitments or penalties for non-use. The SEPA imposes no
restrictions on Scinai's operating activities or other
capital-raising efforts.
"The SEPA provides us with significant flexibility to access
additional capital as we advance our R&D programs, expand our
CDMO business, and pursue strategic opportunities," said
Amir Reichman, CEO of Scinai. "We
believe the terms are highly favorable, allowing us to raise
capital from time to time at our discretion at a minimal discount
to the then current market price without issuing warrants. By
controlling the use and timing of the SEPA, we can capitalize on
favorable market conditions as they arise."
The Company intends to use the proceeds from the potential
offering of ADSs under the SEPA to further develop its NanoAbs
programs, support its CDMO business, and for general corporate
purposes, including working capital, research and development
activities, regulatory matters, and capital investments.
For a fuller description of the SEPA, see the Company's Form 6-K
submitted to the Securities and Exchange Commission on March 4, 2025. The securities described herein
have not been registered under the Securities Act of 1933, as
amended, and may not be sold in the
United States absent registration or an applicable exemption
from the registration requirements. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any sale of these securities in any state or
other jurisdiction in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or other jurisdiction.
About Scinai Immunotherapeutics
Scinai Immunotherapeutics Ltd. (Nasdaq: SCNI) 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, de-risked 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 cGMP manufacturing, and
pre-clinical and clinical trial design and execution services for
early stage biotech drug development projects.
Company website: www.scinai.com.
Company Contacts Investor Relations | +972 8 930
2529 | ir@scinai.com
Business Development | +972 8 930 2529 | bd@scinai.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Litigation Reform Act of 1995. Words
such as "expect," "believe," "intend," "plan," "continue," "may,"
"will," "anticipate," and similar expressions are intended to
identify forward-looking statements. All statements, other than
statements of historical facts, are forward-looking
statements. These forward-looking statements reflect
management's current views with respect to certain current and
future events and are subject to various risks, uncertainties and
assumptions that could cause the results to differ materially from
those expected by the management of Scinai Immunotherapeutics Ltd.
Risks and uncertainties include, but are not limited to; the
risk that we won't raise any capital under SEPA or that we will not
otherwise benefit from the SEPA as currently anticipated; lower
than anticipated revenues of Scinai's CDMO business; the risk that
Scinai's expanded presence in the U.S. will not significantly
enhance the prospects of its CDMO unit; the risk that the Company
will otherwise be unable to remain compliant with the
continued listing requirements of Nasdaq; failure to sign
agreements with other potential clients of the CDMO business; a
delay in the commencement and results of pre-clinical and clinical
studies, including the Phase 1/2a study for psoriasis, the risk of
delay in, Scinai's inability to conduct, or the unsuccessful
results of, its research and development activities, including the
contemplated in-vivo studies and a clinical trial; the risk that
Scinai will not be successful in expanding its CDMO business or
in-license other NanoAbs; the risk that Scinai may not be able to
secure additional capital on attractive terms, if at all; the risk
that the therapeutic and commercial potential of NanoAbs will not
be met or that Scinai will not be successful in bringing the
NanoAbs towards commercialization; the risk of a delay in the
preclinical and clinical trials data for NanoAbs, if any; the risk
that our business strategy may not be successful; Scinai's ability
to acquire rights to additional product opportunities; Scinai's
ability to enter into collaborations on terms acceptable to Scinai
or at all; timing of receipt of regulatory approval of Scinai's
manufacturing facility in Jerusalem, if at all or when required; the
risk that the manufacturing facility will not be able to be used
for a wide variety of applications and other vaccine and treatment
technologies; and the risk that drug development involves a lengthy
and expensive process with uncertain outcomes. More detailed
information about the risks and uncertainties affecting the Company
is contained under the heading "Risk Factors" in the Company's
Annual Report on Form 20-F filed with the Securities and Exchange
Commission ("SEC") on May 15, 2024,
and the Company's subsequent filings with the SEC. Scinai
undertakes no obligation to revise or update any forward-looking
statement for any reason.
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SOURCE Scinai Immunotherapeutics Ltd.
