NetworkNewsBreaks – Scinai Immunotherapeutics Lt
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Posted On: 06/13/2024 4:46:41 PM
NetworkNewsBreaks – Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI) Receives LOI with European Investment Bank for Loan-to-Equity Conversion
Scinai Immunotherapeutics (NASDAQ: SCNI), a biopharmaceutical company focused on the development of inflammation and immunology (“I&I”) biological products and on providing contract development and manufacturing organization (“CDMO”) services through its Scinai Bioservices business unit, has received a nonbinding letter of intent (“LOI”) from the European Investment Bank (“EIB”). According to the announcement, the LOI contains terms for converting EIB’s loan of approximately $27.6 million into equity in the form of prefunded warrants; the warrants, which will be exercisable into American Depositary Shares (“ADSs”), represent 19.5% of the fully diluted capital of the company as well as capped variable return mostly in the form of a royalty on the company’s revenues. “The company believes that this loan-to-equity conversion would immediately eliminate the shareholders’ deficit of $4.5 million and create an estimated shareholders equity surplus of approximately $14.5 million,” stated the press release. “The company retained Deloitte to prepare a white paper analyzing the accounting impact of the loan-to-equity conversion. The accounting analysis is expected to be reflected in the company’s Q3 2024 financial reports. . . . The company believes that these terms are very favorable to the company and its shareholders, and that the substantial reduction in its long-term liabilities should improve its standing in the financial community.”
NOTE TO INVESTORS: The latest news and updates relating to SCNI are available in the company’s newsroom at https://nnw.fm/SCNI
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or republished: http://NNW.fm/Disclaimer
Scinai Immunotherapeutics (NASDAQ: SCNI), a biopharmaceutical company focused on the development of inflammation and immunology (“I&I”) biological products and on providing contract development and manufacturing organization (“CDMO”) services through its Scinai Bioservices business unit, has received a nonbinding letter of intent (“LOI”) from the European Investment Bank (“EIB”). According to the announcement, the LOI contains terms for converting EIB’s loan of approximately $27.6 million into equity in the form of prefunded warrants; the warrants, which will be exercisable into American Depositary Shares (“ADSs”), represent 19.5% of the fully diluted capital of the company as well as capped variable return mostly in the form of a royalty on the company’s revenues. “The company believes that this loan-to-equity conversion would immediately eliminate the shareholders’ deficit of $4.5 million and create an estimated shareholders equity surplus of approximately $14.5 million,” stated the press release. “The company retained Deloitte to prepare a white paper analyzing the accounting impact of the loan-to-equity conversion. The accounting analysis is expected to be reflected in the company’s Q3 2024 financial reports. . . . The company believes that these terms are very favorable to the company and its shareholders, and that the substantial reduction in its long-term liabilities should improve its standing in the financial community.”
NOTE TO INVESTORS: The latest news and updates relating to SCNI are available in the company’s newsroom at https://nnw.fm/SCNI
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or republished: http://NNW.fm/Disclaimer
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