European Investment Bank (EIB) extends maturity of its finance facility with Scinai Immunotherapeutics from 2027 to 2031
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 | [email protected]
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.
