JERUSALEM, June 7, 2024
/PRNewswire/ -- Scinai Immunotherapeutics Ltd. (Nasdaq:
SCNI) (the "Company"), a biotechnology company focused on
developing inflammation and immunology (I&I) biological
products and on providing CDMO services through its Scinai
Bioservices business unit, today announced that on June 5, 2024, it received formal
notification from the Listing Qualification Department (the
"Staff") of the Nasdaq Stock Market ("Nasdaq") that the Company has
regained compliance with the minimum $1.00 bid price requirement set forth in Nasdaq
Listing Rule 5550(a)(2) (the "Rule").
The Company previously disclosed in a press release dated
May 6, 2024, that it received a
letter from the Staff notifying the Company of its noncompliance
with the Rule by failing to maintain the required minimum bid price
for the Company's American Depositary Shares ("ADSs"). The
Company also disclosed in that press release that it had timely
requested a hearing before an independent Nasdaq Hearings Panel
(the "Hearings Panel") to present a plan to regain compliance and
that its Board of Directors had already approved a ratio
change of the ADSs to its non-traded ordinary shares, increasing
the number of ordinary shares represented by each ADS from 400
to 4,000, effective May 21, 2024.
Following the ratio change the closing bid price of the ADSs
equaled or exceeded $1.00 per ADS for
the following ten consecutive business days. As a result, the
Company regained compliance with the Rule and the Staff issued the
above-mentioned notification .
On May 24, 2024, the Company
announced the receipt of a Nasdaq Staff determination letter
regarding noncompliance with the minimum shareholders' equity
required for continued listing and that as part of the hearing
previously requested with the Hearings Panel it would present a
plan for the Company to regain compliance with this requirement
(the "Plan"). The Company also announced that it was engaged in
discussions with the European Investment Bank (the "EIB") regarding
amending the finance contract with the EIB and the conversion of a
significant portion of the loan owed by the Company to EIB into
equity in the Company on terms the Company considers favorable to
the Company and its shareholders. These discussions are
advancing, and the Company believes it will be in a position to
include the potential conversion as a key component of the Plan to
be presented to the Hearings Panel on June
18, 2024. Any revised terms of the finance contract
with the EIB are subject to obtaining formal approval from
appropriate EIB governing bodies, negotiating and finalizing
definitive agreements relating to the revised terms, and the
fulfilment of any condition precedent, all to the EIB's
satisfaction.
In the notification provided by the Staff on June 5, 2024, the Staff stated that the Company
remains non-compliant with the equity requirement in Listing Rule
5550(b)(1), or any of the alternative requirements under Listing
Rule 5550(b), and accordingly the June 18,
2024, hearing will be held as scheduled.
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 to
early stage biotech drug development programs. 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.
Examples of such statements include, but are not limited to, the
future price of the ADSs. 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 the Company will be unable to meet the continued listing
requirements of Nasdaq, including the risk that the consummation of
the conversion of the EIB loan to equity would not resolve the
recent deficiency notice from NASDAQ with respect to the
Stockholders' Equity Requirement; 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; 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 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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