Core Viewpoint - Scinai Immunotherapeutics Ltd. has successfully closed a Loan Restructuring Agreement with the European Investment Bank, which includes converting a significant portion of its debt into preferred shares, thereby improving its financial standing and compliance with Nasdaq listing requirements [1][2][3]. Financial Restructuring - The company converted approximately EUR 26.6 million (around $29 million) of debt into 1,000 preferred shares, reducing the outstanding debt to EUR 250,000 (approximately $273,000) with a maturity date of December 31, 2031 [2]. - The amendments to the Finance Contract eliminate the requirement for variable remuneration previously owed to the EIB [7]. Preferred Shares Details - The preferred shares are convertible into a fixed number of American Depositary Shares (ADSs), with each share convertible into 364 ADSs, representing 19.5% of the fully diluted capital of the company [4]. - Holders of the preferred shares cannot convert them for 12 months from issuance and are restricted from converting if it results in owning more than 4.99% of the company's outstanding ADSs [5]. Compliance and Equity Position - Following the restructuring, the company has stockholders' equity exceeding $2.5 million, which is necessary for compliance with Nasdaq Listing Rule 5550(b)(1) [3]. - The company expects to receive confirmation from the Nasdaq Hearing Panel regarding its compliance status [3]. Company Overview - Scinai Immunotherapeutics is focused on developing inflammation and immunology biological products and offers CDMO services through its Scinai Bioservices unit, targeting unmet medical needs with its innovative pipeline of nanosized VHH antibodies [8].
Scinai Announces Closing of Loan Restructuring Agreement with European Investment Bank Converting Approximately $29 million of Debt to Preferred Equity and Leaving Debt Balance of $273,000