JERUSALEM, Nov. 20,
2023 /PRNewswire/ -- Scinai Immunotherapeutics
Ltd. (Nasdaq: SCNI) today announced today the receipt of formal
notification from the Nasdaq Stock Market ("Nasdaq") that the
Company has regained compliance with Nasdaq listing rules regarding
minimum stockholders' equity.
Scinai is a biopharmaceutical company focused on developing,
manufacturing, and commercializing innovative inflammation and
immunology (I&I) biological products primarily for the
treatment of autoimmune and infectious diseases, and providing
end-to-end boutique CDMO services.
Nasdaq indicated that their determination that the Company
complies with Listing Rule 5550(b)(1), which requires listed
companies to maintain a minimum $2.5
million in stockholders' equity, is based on the content of
the Company's Form 6-K dated November 13,
2023. Nasdaq also indicated that if the Company does not
evidence such compliance in its next periodic report, Nasdaq may
provide notification to the Company that it may be subject to
delisting, at which time the Company may appeal the determination
to a Hearings Panel.
The November 13 plan filed by
Scinai, which forms the basis of Nasdaq's decision to determine
that the Company complies with Listing Rule 5550(b)(1),
included:
- A revised financial facility contract with the European
Investment Bank ("EIB") extending the maturity of the EIB's loan
from 2027 to 2031. The formal documentation is expected to be
signed soon.
- The recent change of the company's functional currency
from NIS to USD to better reflect the Company's new business
strategy. This change impacted the classification of most of the
current and future warrants as equity and not as liabilities, as
per GAAP accounting rules.
- The updated assessment by an external appraisal
of Scinai's weighted average cost of capital
(WACC) to 35%. The Company expects this new
WACC to be incorporated in the Company's financial statements
for the year ending December 31,
2023. A higher WACC is expected to lower
the NPV of long-term liabilities.
In a related matter and as reported on November 3, 2023, Scinai received a letter
regarding non-compliance with an additional Nasdaq listing
requirement to maintain a minimum bid price of $1.00 per share. As reported, the letter is only
a notification of deficiency and has no immediate effect on the
listing or trading of the Company's American Depository Shares
("ADSs"), and Scinai intends to monitor the closing bid price of
its ADSs and may, if appropriate, consider implementing available
options to regain compliance with the minimum bid price
requirement.
About Scinai Immunotherapeutics Ltd.
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, compliance with the
listing requirements of the Nasdaq Stock Market. 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
will not evidence compliance with Nasdaq listing rules regarding
minimum stockholders' equity in its next periodic report and does
not cure the non-compliance with the minimum bid price requirement
of Nasdaq, 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.
