Scinai Immunotherapeutics Secures $10 Million Funding Through Standby Equity Purchase Agreement

Scinai Immunotherapeutics Secures $10 Million in Funding

On March 5, 2025, Scinai Immunotherapeutics Ltd. (Nasdaq: SCNI) announced a significant development in its pursuit of capital through a newly established Standby Equity Purchase Agreement (SEPA) with Yorkville Advisors Global, LP. This agreement allows Scinai to potentially sell up to $10 million worth of its American Depository Shares (ADSs) to Yorkville, thereby securing crucial resources to enhance its research and development initiatives.

Scinai is focused on creating products aimed at treating inflammation and advancing immunology, making this funding essential for the company's growth trajectory. The SEPA offers the company a streamlined path to access funds without the obligatory sales commitment, allowing for optimal financial flexibility.

Under the terms of the SEPA, Scinai can sell ADSs, each composed of 4,000 ordinary shares, at a price that is 3% lower than the lowest daily volume-weighted average price over the three days following a sales notice. This pricing mechanism ensures that Scinai can maximize its holdings while providing Yorkville with attractive purchasing conditions. Importantly, the company retains full control over the timing and volume of these potential sales.

Amir Reichman, the CEO of Scinai, expressed enthusiasm regarding this funding opportunity, noting, "The SEPA gives us significant flexibility to access additional capital as we progress with our R&D programs, expand our CDMO business, and chase strategic opportunities. We find the terms highly favorable, permitting us to raise capital at our discretion without issuing warrants."

The funding from the SEPA is earmarked for several key initiatives, including the continued development of Scinai's NanoAbs program and supporting its CDMO services. This will encompass ongoing operational expenses, research and development activities, regulatory compliance, and capital investments necessary for the company’s future growth.

Scinai Immunotherapeutics operates through two major business units: in-house development of inflammation and immunology biological therapeutics and a Contract Development and Manufacturing Organization (CDMO) that provides essential services for early-stage biotech firms. By combining these efforts, Scinai aims not only to push forward its innovative treatment lines but also to solidify its role within the biotechnology sector through tailored services.

The SEPA illustrates the company's commitment to maintaining strategic autonomy while fostering relationships that can bolster its capital structure. With no minimum commitment or penalties for non-use, Scinai is empowered to leverage its securities market efficiently.

In conclusion, the establishment of the SEPA with Yorkville Advisors marks a pivotal moment for Scinai Immunotherapeutics, enabling the biopharmaceutical entity to gain the necessary capital for its ambitious projects while minimizing operational disruptions. As the company moves forward, enhanced funding should accelerate its R&D activities and support the development of life-saving therapeutics aimed at addressing significant medical needs in the fields of inflammation and immunology.