Scinai Immunotherapeutics Restructures $29M Debt to Equity

TL;DR

Scinai just turned $29M debt into preferred equity with EIB, slashing its debt load.

AI Summary

On August 21, 2024, Scinai Immunotherapeutics Ltd. announced the closing of a Loan Restructuring Agreement with the European Investment Bank. This agreement converts approximately $29 million of debt into preferred equity, leaving a remaining debt balance.

Why It Matters

This restructuring significantly reduces Scinai's debt burden, potentially improving its financial flexibility and attractiveness to investors.

Risk Assessment

Risk Level: medium — While debt reduction is positive, the conversion to preferred equity may dilute existing shareholders and the remaining debt still needs to be managed.

Key Numbers

• $29 million — Debt Restructured (Amount of debt converted to preferred equity)

Key Players & Entities

• Scinai Immunotherapeutics Ltd. (company) — Registrant
• European Investment Bank (company) — Lender in loan restructuring
• $29 million (dollar_amount) — Amount of debt converted to equity
• August 21, 2024 (date) — Date of announcement

FAQ

From the Filing

0001213900-24-071280.txt : 20240821 0001213900-24-071280.hdr.sgml : 20240821 20240821091049 ACCESSION NUMBER: 0001213900-24-071280 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20240821 FILED AS OF DATE: 20240821 DATE AS OF CHANGE: 20240821 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Scinai Immunotherapeutics Ltd. CENTRAL INDEX KEY: 0001611747 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] ORGANIZATION NAME: 03 Life Sciences IRS NUMBER: 000000000 STATE OF INCORPORATION: L3 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-37353 FILM NUMBER: 241227392 BUSINESS ADDRESS: STREET 1: JERUSALEM BIOPARK, 2ND FLOOR STREET 2: HADASSAH EIN KEREM CAMPUS CITY: JERUSALEM STATE: L3 ZIP: 00000 BUSINESS PHONE: 972-8-9302529 MAIL ADDRESS: STREET 1: JERUSALEM BIOPARK, 2ND FLOOR STREET 2: HADASSAH EIN KEREM CAMPUS CITY: JERUSALEM STATE: L3 ZIP: 00000 FORMER COMPANY: FORMER CONFORMED NAME: BiondVax Pharmaceuticals Ltd. DATE OF NAME CHANGE: 20140624 6-K 1 ea0212017-6k_scinai.htm REPORT OF FOREIGN PRIVATE ISSUER UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 Under the Securities Exchange Act of 1934 For the Month of August 2024 Commission File Number: 001-37353 SCINAI IMMUNOTHERAPEUTICS LTD. (Translation of registrant’s name into English) Jerusalem BioPark, 2nd Floor Hadassah Ein Kerem Campus Jerusalem, Israel (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐ Explanatory Note On August 21, 2024, Scinai Immunotherapeutics Ltd. issued a press release announcing the closing of a Loan Restructuring Agreement with European Investment Bank converting approximately $29 million of debt to preferred equity and leaving a debt balance of $273,000. A copy of the press release is furnished herewith as Exhibit 99.1. This Report on Form 6-K is hereby incorporated by reference into the registrant’s Registration Statements on Form S-8 (File No. 333-271293 and File No. 333-239344 ) and Form F-3 (File No. 333-274078 and File No. 333-276767 ), to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished. Exhibit Index Exhibit No. Description 99.1 Press release dated August 21, 2024. 1 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Scinai Immunotherapeutics Ltd. Date: August 21, 2024 By: /s/ Amir Reichman Amir Reichman Chief Executive Officer 2 EX-99.1 2 ea021201701ex99-1_scinai.htm PRESS RELEASE DATED AUGUST 21, 2024 Exhibit 99.1 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 Jerusalem, ISRAEL – aUGUST 21 , 2024 – Scinai Immunotherapeutics Ltd. (Nasdaq: SCNI; “Scinai”, or the “Company”), a biopharmaceutical company focused on developing inflammation and immunology (I&I) biological products and on providing CDMO services through its Scinai Bioservices business unit, today announced that it has closed the previously announced Loan Restructuring Agreement (the “Restructuring Agreement”) with its lender, the European Investment Bank (the “EIB”). The Restructuring Agreement also included an amendment to the amended Finance Contract (the “Finance Contract”) between the parties. In connection with the transaction, an amount equal to approximately EUR 26.6 million (equal to approximately $29 million), including interest accrued to date, owed by the Company