Biotechnology Company Regains Compliance With The Nasdaq
Scinai Immunotherapeutics Ltd. Regains Compliance with Nasdaq Minimum Bid Price Requirement.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as investment advice. Readers are encouraged to perform their own due diligence or consult with a financial advisor before making any investment decisions.
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Scinai Immunotherapeutics Ltd. (Nasdaq: SCNI) ("the Company"), a biotechnology company specializing in the development of inflammation and immunology (I&I) biological products and offering contract development and manufacturing organization (CDMO) services through its Scinai Bioservices business unit, recently announced significant progress in meeting Nasdaq's listing requirements. On June 5, 2024, the Company received formal notification from Nasdaq's Listing Qualification Department ("the Staff") confirming that it had regained compliance with the minimum $1.00 bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) ("the Rule").
Steps to Regaining Compliance
The journey to regaining compliance began when Scinai Immunotherapeutics disclosed in a press release dated May 6, 2024, that it had received a letter from Nasdaq notifying the Company of its noncompliance with the Rule. The issue stemmed from the Company's failure to maintain the required minimum bid price for its American Depositary Shares (ADSs). Faced with this challenge, the Company promptly requested a hearing before an independent Nasdaq Hearings Panel ("the Hearings Panel") to present a comprehensive plan to regain compliance.
Ratio Change of ADSs: A critical component of this plan involved a strategic adjustment to the ratio of ADSs to the Company’s non-traded ordinary shares. The Board of Directors approved an increase in the number of ordinary shares represented by each ADS from 400 to 4,000, effective May 21, 2024. This move successfully boosted the closing bid price of the ADSs, which equaled or exceeded the $1.00 threshold for ten consecutive business days. Consequently, the Staff issued a formal notification on June 5, 2024, confirming that the Company had regained compliance with the Rule.
Despite this success, Scinai Immunotherapeutics continues to address another critical compliance issue related to Nasdaq's minimum shareholders' equity requirement. On May 24, 2024, the Company announced it had received a Nasdaq Staff determination letter regarding its noncompliance with the minimum shareholders' equity required for continued listing.
In response, the Company has been actively engaged in discussions with the European Investment Bank (EIB) to amend its existing finance contract and convert a significant portion of its loan into equity. This conversion, if executed under favorable terms, would bolster the Company's shareholders' equity and aid in meeting Nasdaq's listing requirements. The discussions are progressing positively, and Scinai Immunotherapeutics aims to include this potential conversion as a pivotal element of its compliance plan to be presented to the Hearings Panel on June 18, 2024.
Challenges and Next Steps
The successful amendment of the finance contract with the EIB and the loan-to-equity conversion are contingent upon the following factors:
Obtaining formal approvals from the relevant EIB governing bodies
Negotiating and finalizing definitive agreements related to the revised terms
Fulfilling any condition precedents required by the EIB
In the notification dated June 5, 2024, the Staff acknowledged that the Company remains non-compliant with the equity requirement stipulated in Listing Rule 5550(b)(1), as well as other alternative requirements under Listing Rule 5550(b). Therefore, the scheduled hearing on June 18, 2024, will proceed as planned to assess the Company's compliance plan and efforts. Scinai Immunotherapeutics Ltd. (Nasdaq: SCNI) is a leading biopharmaceutical company structured around two complementary business units. The first unit focuses on the in-house development of innovative inflammation and immunology (I&I) biological therapeutic products. This includes an impressive pipeline of nanosized VHH antibodies (NanoAbs), designed to target diseases with significant unmet medical needs. The second unit, Scinai Bioservices, provides high-quality CDMO services, leveraging the Company's expertise in biological product development and manufacturing.
The Company’s commitment to developing groundbreaking I&I therapies reflects its dedication to addressing complex health challenges and improving patient outcomes. By advancing its proprietary NanoAbs technology, Scinai Immunotherapeutics aims to bring new treatment options to market, fostering better management of inflammatory and immune-related conditions.
Scinai Immunotherapeutics' recent milestone of regaining compliance with Nasdaq's minimum bid price requirement highlights the Company's proactive measures and strategic planning. While challenges remain, particularly concerning the minimum shareholders' equity requirement, ongoing discussions with the European Investment Bank and the planned amendments to the finance contract represent promising steps towards full compliance.
As the Company prepares for its hearing on June 18, 2024, it demonstrates a robust commitment to maintaining its Nasdaq listing and securing the trust of its investors and stakeholders. Moving forward, Scinai Immunotherapeutics remains focused on its dual mission of developing innovative I&I therapies and providing top-tier CDMO services.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as investment advice. Readers are encouraged to perform their own due diligence or consult with a financial advisor before making any investment decisions.
As an investor it's important to stay updated with major news. Get real-time stock market alerts, news, and research by creating an account here.