Core Viewpoint - Scinai Immunotherapeutics Ltd. has successfully restructured its loan agreement with the European Investment Bank, converting approximately EUR 26.6 million (around $29 million) of debt into equity, which is expected to strengthen the company's financial position and support its development of new therapeutics in inflammation and immunology [1][2][4]. Financial Restructuring - The loan restructuring agreement includes the conversion of approximately EUR 26.6 million into 1,000 preferred shares, reducing the outstanding loan amount to EUR 250,000 (approximately $273,000) with a maturity date of December 31, 2031 [2]. - The new loan amount will not accrue interest and is not prepayable [2]. - The preferred shares can be converted into a fixed number of American Depositary Shares (ADSs) representing 19.5% of the fully diluted capital of the company [3]. Preferred Shares Details - The preferred shares do not have anti-dilution provisions, do not accrue dividends, and are redeemable at the company's discretion at a cumulative redemption value of $34 million [3][4]. - Holders of preferred shares are entitled to redemption payments and distributions in the event of liquidation before ordinary shareholders [4]. - There are restrictions on the conversion of preferred shares to ADSs to prevent any holder from owning more than 4.99% of the company's outstanding ADSs [5]. Company Operations - Scinai Immunotherapeutics focuses on developing biological products for inflammation and immunology, alongside providing CDMO services for early-stage biotech projects [8].
Scinai Announces Signing of Loan Restructuring Agreement with European Investment Bank; Converting Approximately $29 million of Debt to Preferred Equity Convertible into 19.5% Common Equity