Scinai closes $4M private placement and warrant inducement

Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI) has closed a private placement and warrant inducement transaction, raising approximately $4.0 million in gross proceeds before placement agent fees and expenses.

The private placement involved 2,458,334 American Depositary Shares, or pre-funded warrants in lieu thereof, each representing 40,000 ordinary shares, along with Series A-1 Warrants to purchase up to 3,687,501 ADSs. The company also closed an immediate exercise of existing warrants to purchase up to 879,194 ADSs at a reduced exercise price of $1.20 per ADS, with additional Series A-1 Warrants issued to purchase up to 1,318,791 ADSs.

A.G.P./Alliance Global Partners served as the sole placement agent for the transactions.

According to a statement from the company, net proceeds will be used alongside existing cash to advance current customer programs, pursue additional contract development and manufacturing organization (CDMO) contracts, and continue investment in its immunotherapy pipeline.

Chief Executive Officer Amir Reichman said the company estimates an operating runway to late 2027 based on its current plan, existing cash, net financing proceeds, and expected cash collections. He added that activation of later phases of a recently announced CDMO agreement, along with associated cash receipts, could extend that runway into 2028, subject to sales assumptions, customer payments, and execution.

The ADSs and warrants issued in the private placement have not been registered under the Securities Act of 1933. The company has agreed to file a registration statement with the SEC to register for resale the relevant securities.

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