Scinai Immunotherapeutics Ltd. (NASDAQ:SCNI) announced it has secured approximately $2.61 million through a private placement and warrant inducement transaction, as the company looks to strengthen its manufacturing platform and advance its pipeline.
Details of the Fundraising
The company agreed to issue 5,208,333 American Depositary Shares at $0.48 per ADS to a life sciences institutional investor along with other participants. Each ADS represents 4,000 ordinary shares.
The offering also includes:
- Series A warrants to purchase up to 5,208,333 ADSs at $0.48, exercisable immediately with a two-year term
- Series B warrants for up to 5,208,333 ADSs at $0.55, exercisable immediately with a five-year term
In addition, Scinai reached a warrant inducement agreement with an existing investor, leading to the immediate exercise of warrants for 229,310 ADSs and the issuance of new warrants covering up to 458,621 ADSs.
The transaction is expected to close around April 27, 2026, subject to customary conditions, with gross proceeds of about $2.61 million before fees and expenses.
Use of Proceeds
Scinai said the funds, together with existing cash, will be used to:
- Expand its contract development and manufacturing (CDMO) platform
- Support customer programmes
- Continue investing in its immunotherapy pipeline
The funding is significant given the company’s small market capitalisation and ongoing financial pressures.
Business Focus and Recent Developments
Scinai operates through its subsidiary, Scinai Biopharma Services Ltd., which provides development and manufacturing services to biotech and pharmaceutical clients.
The company recently reorganised its structure to separate its CDMO operations into this subsidiary, following the acquisition of Recipharm Israel Ltd., which strengthened its manufacturing capabilities.
It has also secured additional support from the Israel Innovation Authority for a robotic aseptic fill-and-finish platform. The project, backed by a NIS 5 million grant over two years, aims to implement a fully automated system aligned with EU GMP Annex 1 standards, with validation expected by the third quarter of 2026.
Advisory and Regulatory Details
A.G.P./Alliance Global Partners acted as sole financial advisor on the transaction.
The securities are being offered under exemptions from registration requirements pursuant to Section 4(a)(2) of the Securities Act of 1933 and Regulation D.