Significant positive impact to Scinai's
financial health is expected
Amendment made in light of Scinai's
recent strategic shift to development of nanosized antibody
therapeutics aimed at inflammation and immunology diseases
JERUSALEM , Nov. 29,
2023 /PRNewswire/ -- Scinai Immunotherapeutics
Ltd. (Nasdaq: SCNI) announced today the execution of a formal
amendment to its finance contract with the European Investment Bank
(EIB). The amendment extends the maturity date of the contract by
four years from December 31, 2027, to
December 31, 2031.
Amir Reichman, Scinai's
CEO, commented, "I thank the EIB for their ongoing support and
cooperation. As the lending arm of the European Union, the EIB's
mission includes providing financing to support medical research
and improve healthcare, and to do so in a manner that provides
innovative young companies not only with required resources but
also sufficient time to achieve their business goals. This
extension of the maturity date of our financial facility agreement
recognizes the time frame required to develop our anti–IL–17
NanoAbs as a treatment for autoimmune diseases such as psoriasis
and psoriatic arthritis. In particular, the extension will
positively impact our financial health, thereby helping to clear
the path towards developing Scinai into a company that provides
significant value to patients and shareholders."
In part, the amendment reflects Scinai's recent strategic
shift to focus on (1) Developing innovative inflammation and
immunology (I&I) biological products primarily for the
treatment of autoimmune and infectious diseases, beginning with a
pipeline of VHH antibody (NanoAb)-based therapies targeting
underserved and growing patient populations; and (2) The
launch of its 'Scinai Bioservices' business unit offering
end-to-end CDMO services to other biotech startups.
Among other anticipated benefits to Scinai's financial health
and as reported by Scinai on November
20, the amendment to the €24 million EIB finance contract
formed part of the basis of Nasdaq's determination that the Company
regained compliance with Nasdaq's Listing Rule 5550(b)(1) requiring
minimum stockholders' equity of $2.5
million.
About Scinai Immunotherapeutics:
Scinai
Immunotherapeutics Ltd. (Nasdaq: SCNI) is a biopharmaceutical
company with two complementary business units: In-house development
of inflammation and immunology (I&I) biological products
beginning with an innovative, de-risked, pipeline of nanosized VHH
antibodies (NanoAbs) targeting diseases with large unmet medical
needs; and a comprehensive CDMO service to help biotech companies
bring their products to market efficiently and effectively by
leveraging Scinai's GMP and non-GMP drug development and
manufacturing capabilities for pre-clinical and clinical studies.
Company website: www.scinai.com.
Company Contact
Joshua
Phillipson | +972 8 930 2529 |
joshua.phillipson@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, included in this press release regarding
strategy, future operations, future financial position, future
revenue, projected expenses, prospects, plans and objectives of
management are forward-looking statements. Examples of such
statements include, but are not limited to, the
effect of the amendment of the finance contract with EIB on the
Company's financial health. 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 that
the Company's financial health will not be positively impacted by
the amendment of the finance contract, the risk that the Company
will not remain listed on Nasdaq, the risk that the Company will
not be successful in becoming an end-to-end provider of CDMO
services at high international standards, 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; 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; the risk that the European
Investment Bank (EIB) may accelerate the financial facility under
its finance contract with Scinai; 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 10-K filed
with the Securities and Exchange Commission on April 17, 2023. Scinai undertakes no obligation
to revise or update any forward-looking statement for any
reason.
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SOURCE Scinai Immunotherapeutics Ltd.