JERUSALEM, Aug. 29,
2024 /PRNewswire/ -- Scinai
Immunotherapeutics Ltd. (Nasdaq: SCNI) ("Scinai", or the
"Company"), a biopharmaceutical 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 August 27,
2024, it received formal notification (the
"Notification") from the Listing Qualification Department (the
"Staff") of the Nasdaq Stock Market ("Nasdaq") that the Company has
regained compliance with Nasdaq Listing Rule 5550(b)(1) (the
"Rule") that requires listed companies to maintain stockholders'
equity of at least $2.5 million. On
August 21, 2024, the Company
announced the closing of the Loan Restructuring Agreement with
European Investment Bank converting approximately $29 million of debt to preferred equity and
leaving a debt balance of €250,000 (approximately $273,000), as a result of which the Company has
stockholders' equity in excess of $2.5
million. The Company is now back in full compliance with
all Nasdaq listing requirements.
Amir Reichman, the Company's CEO,
stated: "After quite a bit of heavy lifting we have cleaned up our
balance sheet through the conversion of almost $29 million of debt into equity and regained full
compliance with the Nasdaq listing requirements. This clears the
path for us to focus on our promising R&D programs and our new
CDMO business unit to build shareholder value. Our thanks to all
who participated in this turnaround and the patience, cooperation
and support shown by our stakeholders."
As is the policy at Nasdaq when a listed company regains
compliance with the shareholders' equity rule, the Staff stated in
the Notification that the Company is subject to a Mandatory Panel
Monitor for a period of one year from the date of the Notification.
If within that one-year monitoring period the Staff finds the
Company again out of compliance with the Rule, the Company will not
be permitted to provide the Staff with a plan of compliance with
respect to that deficiency and the Staff will not be permitted to
grant additional time for the Company to regain compliance with
respect to that deficiency, and the Company will not be afforded an
applicable cure or compliance period pursuant to Nasdaq Listing
Rule 5810(c)(3). Instead, the Staff will issue a Delist
Determination Letter and the Company will have an opportunity to
request a new hearing.
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 for
early stage biotech drug development projects.
Company website: www.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
ability of the Company to remain compliant with the continued
listing standards of Nasdaq. 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 otherwise be unable to remain compliant
with the continued listing requirements of Nasdaq; lower than
anticipated revenues of Scinai's CDMO business in 2024 and
thereafter, failure to sign agreements with other potential clients
of the CDMO business; a delay in the commencement and results of
pre-clinical and clinical studies, 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; 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.
Logo: https://mma.prnewswire.com/media/2310190/Scinai_Immunotherapeutics_Logo.jpg
Company Contacts
Investor Relations | +972 8 930 2529 | ir@scinai.com
Business Development | +972 8 930 2529 | bd@scinai.com
View original
content:https://www.prnewswire.com/news-releases/scinai-regains-full-compliance-with-nasdaq-listing-requirements-302233940.html
SOURCE Scinai Immunotherapeutics Ltd.