Scinai Regains Full Compliance with Nasdaq Listing Requirements
Scinai Immunotherapeutics (Nasdaq: SCNI) has regained full compliance with Nasdaq listing requirements, specifically Rule 5550(b)(1) which mandates a minimum stockholders' equity of $2.5 million. This achievement follows the company's recent Loan Restructuring Agreement with European Investment Bank, converting approximately $29 million of debt to preferred equity. The restructuring has significantly improved Scinai's balance sheet, leaving a debt balance of only €250,000 (approximately $273,000).
CEO Amir Reichman expressed that this development allows the company to focus on its R&D programs and new CDMO business unit. However, Scinai will be subject to a Mandatory Panel Monitor for one year, during which any non-compliance with the Rule could result in immediate delisting proceedings without the opportunity for a compliance plan.
Scinai Immunotherapeutics (Nasdaq: SCNI) ha ripreso pienamente la conformità ai requisiti di quotazione del Nasdaq, in particolare alla Regola 5550(b)(1) che richiede un capitale degli azionisti minimo di 2,5 milioni di dollari. Questo traguardo segue il recente Accordo di Ristrutturazione del Debito con la Banca Europea per gli Investimenti, che ha convertito circa 29 milioni di dollari di debito in capitale preferenziale. La ristrutturazione ha notevolmente migliorato il bilancio di Scinai, lasciando un saldo debitorio di soli €250.000 (circa 273.000 dollari).
Il CEO Amir Reichman ha espresso che questo sviluppo consente all'azienda di concentrarsi sui suoi programmi di R&S e sulla nuova unità di business CDMO. Tuttavia, Scinai sarà soggetta a un Monitor di Panel Obbligatorio per un anno, durante il quale eventuali non conformità alla Regola potrebbero comportare immediati procedimenti di delisting senza la possibilità di un piano di compliance.
Scinai Immunotherapeutics (Nasdaq: SCNI) ha recuperado la plena conformidad con los requisitos de cotización de Nasdaq, específicamente la Regla 5550(b)(1) que exige un patrimonio de accionistas mínimo de 2.5 millones de dólares. Este logro sigue al reciente Acuerdo de Reestructuración de Préstamos con el Banco Europeo de Inversiones, convirtiendo aproximadamente 29 millones de dólares de deuda en capital preferente. La reestructuración ha mejorado significativamente el balance de Scinai, dejando un saldo de deuda de solo €250,000 (aproximadamente $273,000).
El CEO Amir Reichman expresó que este desarrollo permite a la empresa centrarse en sus programas de I+D y en la nueva unidad de negocio CDMO. Sin embargo, Scinai estará sujeta a un Monitor de Panel Obligatorio durante un año, durante el cual cualquier incumplimiento de la Regla podría resultar en procedimientos inmediatos de deslistado sin la oportunidad de un plan de cumplimiento.
스키나이 면역치료제 (Nasdaq: SCNI)는 나스닥 상장 요건, 특히 주주 자본 최소 250만 달러를 요구하는 규정 5550(b)(1) 준수를 완전히 회복했습니다. 이 성과는 유럽투자은행과의 최근 대출 재구성 계약의 결과로 약 2900만 달러의 부채를 우선주로 전환했습니다. 이 구조조정은 스키나이의 재무 상태를 크게 개선하여 부채 잔액을 단 250,000유로(약 273,000달러)로 남겼습니다.
CEO 아미르 라이흐만은 이 발전이 회사가 R&D 프로그램 및 새로운 CDMO 비즈니스 유닛에 집중할 수 있게 해준다고 밝혔습니다. 그러나 스키나이는 1년 동안 의무 패널 모니터링의 대상이 되며, 이 기간 동안 규칙을 준수하지 않을 경우 즉각적인 상장폐지 절차가 진행될 수 있으며, 준수 계획 제안 기회는 없습니다.
Scinai Immunotherapeutics (Nasdaq: SCNI) a rétabli sa conformité totale aux exigences de cotation du Nasdaq, en particulier la Règle 5550(b)(1) qui exige un capital d'actionnaires minimum de 2,5 millions de dollars. Cet accomplissement fait suite au récent Accord de Restructuration de Prêts avec la Banque Européenne d'Investissement, convertissant environ 29 millions de dollars de dette en actions privilégiées. La restructuration a considérablement amélioré le bilan de Scinai, laissant un solde de dette de seulement 250 000 € (environ 273 000 $).
Le PDG Amir Reichman a exprimé que ce développement permet à l'entreprise de se concentrer sur ses programmes de R&D et sa nouvelle unité commerciale CDMO. Cependant, Scinai sera soumise à un suivi obligatoire du panel pendant un an, au cours duquel toute non-conformité à la règle pourrait entraîner des procédures de radiation immédiates sans possibilité de plan de conformité.
Scinai Immunotherapeutics (Nasdaq: SCNI) hat die vollständige Compliance mit den Nasdaq-Listing-Anforderungen wiederhergestellt, insbesondere der Regel 5550(b)(1), die ein Mindestkapital der Aktionäre von 2,5 Millionen Dollar verlangt. Dieser Erfolg folgt auf die jüngste Schuldumstrukturierungsvereinbarung mit der Europäischen Investitionsbank, die etwa 29 Millionen Dollar an Schulden in Vorzugsaktien umgewandelt hat. Die Umstrukturierung hat die Bilanz von Scinai erheblich verbessert, sodass nur ein Schuldenstand von 250.000 € (ca. 273.000 $) bleibt.
CEO Amir Reichman äußerte, dass diese Entwicklung es dem Unternehmen ermöglicht, sich auf seine F&E-Programme und die neue CDMO-Geschäftseinheit zu konzentrieren. Scinai unterliegt jedoch einem verpflichtenden Panelmonitor für ein Jahr, während dessen jede Nichteinhaltung der Regel zu sofortigen Delisting-Verfahren führen kann, ohne die Möglichkeit eines Compliance-Plans.
- Regained full compliance with Nasdaq listing requirements
- Converted $29 million of debt to preferred equity
- Reduced debt balance to approximately $273,000
- Improved balance sheet and stockholders' equity position
- Cleared path to focus on R&D programs and CDMO business unit
- Subject to Mandatory Panel Monitor for one year
- Risk of immediate delisting if found non-compliant within the monitoring period
Insights
Scinai's successful debt restructuring marks a significant financial turnaround. By converting
The restructuring provides Scinai with increased financial flexibility, potentially enabling greater investment in R&D and the new CDMO business unit. However, investors should note the one-year monitoring period imposed by Nasdaq. This oversight underscores the importance of maintaining compliance, as any future violations could lead to immediate delisting proceedings.
While regaining compliance is positive, the company's future financial performance and ability to capitalize on this clean slate will be important for long-term investor confidence.
Scinai's compliance restoration with Nasdaq listing requirements is a critical legal and regulatory milestone. The company has successfully addressed the stockholders' equity deficiency, averting the immediate risk of delisting. However, the implementation of a Mandatory Panel Monitor for one year introduces a heightened level of scrutiny and regulatory risk.
Under this monitoring, any future non-compliance with the shareholders' equity rule could trigger an expedited delisting process, bypassing the usual remediation opportunities. This stringent oversight mechanism underscores the importance of maintaining robust financial health and transparent reporting.
Investors should be aware that this regulatory reprieve, while positive, comes with strings attached. The company's ability to sustain compliance will be important in maintaining its Nasdaq listing and investor confidence in the near term.
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
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
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Company Contacts
Investor Relations | +972 8 930 2529 | ir@scinai.com
Business Development | +972 8 930 2529 | bd@scinai.com
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SOURCE Scinai Immunotherapeutics Ltd.
FAQ
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