European Investment Bank (EIB) considering extending maturity of its financial facility contract with Scinai Immunotherapeutics in light of Scinai’s recent strategic pivot
31 Ottobre 2023 - 2:00PM
via IBN --
Scinai Immunotherapeutics Ltd. (Nasdaq:
SCNI), 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, today announced
that its primary creditor, the European Investment Bank
(EIB), is currently considering favorably adjusting the terms of
the EIB’s financial facility contract with the Company, in
particular by extending the facility’s maturity. Formal feedback
from the EIB management regarding a definitive amendment to the
facility is anticipated as soon as November 2023.
According to its website, the EIB is the lending
arm of the European Union and is the biggest multilateral financial
institution/economic development bank in the world, supporting
projects that promote the priorities and objectives of the European
Union. While the EIB undertakes a thorough due diligence process
when first extending a financial facility or considering an
adjustment to the terms, it also considers the potential impact on
the recipient and structures its financial facilities “with terms
that match the economic life of each project which can sometimes
exceed 30 years.” In this way EIB provides innovative young
companies not only with required resources but also sufficient time
to achieve their business goals and, at the same time, the EIB's
impact objectives. The EIB’s “long-term approach also provides
stability, which matters enormously to many early-stage companies
dealing with new technologies.” In this sense the EIB is quite
different from typical commercial lenders and venture debt lenders
who prioritize relatively rapid repayment.
Currently, the EIB is considering extending a
maturity of EIB’s venture debt facility to Scinai in light of the
Company’s recent strategic shift. As a result of the potential
extension, the Company expects a positive impact on Scinai’s
shareholders’ equity, which could enable the Company to restore
compliance with Nasdaq Listing Rules regarding minimum
shareholders’ equity, subject to the discretion of
Nasdaq.
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. The anticipated adjustment of our financial
facility agreement with the EIB will provide much needed relief to
our financial position, thereby helping to clear the path towards
developing Scinai into a company that provides significant benefits
to patients and investors.”
As announced on Aug. 10, 2022, terms of the
outstanding €24 million financial facility currently includes
maturity on Dec. 31, 2027 as well as royalty payments. In September
2023, as part of the Company’s strategic pivot, the Company
rebranded as Scinai Immunotherapeutics.
There is no guarantee that the EIB will approve
the adjustment of the terms of the EIB’s financial facility with
the Company, including the delay of the facility’s maturity.
About Scinai Immunotherapeutics
Ltd.Scinai Immunotherapeutics Ltd. (Nasdaq: SCNI) 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. With a state-of-the-art facility for
biopharmaceutical product development and manufacturing and highly
experienced pharmaceutical industry leadership, Scinai offers
end-to-end boutique CDMO services in parallel to developing its own
pipeline of diversified and commercially viable products beginning
with an innovative nanosized VHH antibody (NanoAb) pipeline
targeting diseases with large unmet medical needs. Company website:
www.scinai.com.
Company ContactJoshua
Phillipson | +972 8 930 2529 | joshua.phillipson@scinai.com
Forward-Looking StatementsThis
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, statements regarding
the adjustments to the terms of the EIB’s facility to the Company
and compliance with the Nasdaq Listing Rules. 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 EIB will not agree to adjust the
terms of its financial facility to the Company, that the Company’s
ADSs will not return to compliance with the Nasdaq Listing Rules,
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.
Corporate
Communications:InvestorBrandNetwork (IBN)Los Angeles,
Californiawww.InvestorBrandNetwork.com310.299.1717
OfficeEditor@InvestorBrandNetwork.com
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