Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI), a biopharmaceutical company that operates a contract development and manufacturing organization (CDMO) alongside an immunotherapy development platform, has announced securities purchase and warrant inducement agreements with an existing institutional investor. The transactions are expected to generate approximately $4 million in aggregate gross proceeds, according to the company’s press release.
The private placement includes 2,458,334 American Depositary Shares (ADSs), or pre-funded warrants in lieu thereof, together with warrants to purchase up to 3,687,501 additional ADSs. The combined purchase price is set at $1.20 per ADS and accompanying warrants. In addition, under the warrant inducement agreement, the investor will immediately exercise existing warrants covering 879,194 ADSs at a reduced exercise price of $1.20 per ADS and will receive new warrants to purchase up to 1,318,791 ADSs.
The newly issued Series A-1 warrants will be immediately exercisable at $1.20 per ADS and will have five-year terms. The transactions are expected to close on or about Oct. 15, 2026, subject to customary conditions. A.G.P./Alliance Global Partners is serving as the sole placement agent for the transactions.
Scinai intends to use the net proceeds, together with existing cash resources, to expand its CDMO platform, advance customer programs, and continue selective investment in its immunotherapy pipeline. The company’s CDMO, Scinai Biopharma Services Ltd., provides development and manufacturing services to biotechnology and pharmaceutical companies through facilities in Jerusalem and Yavne, Israel. Scinai is also advancing a pipeline of therapeutic candidates licensed from the Max Planck Society and from PinCell S.r.l.
This capital raise is significant for Scinai as it provides funding to bolster both its service-based CDMO operations and its immunotherapy development efforts. For investors, the transaction signals continued support from an existing institutional investor and provides additional capital to execute on the company’s strategic priorities. The warrant inducement, in particular, simplifies the company’s capital structure by converting existing warrants into new ones at a lower exercise price, potentially reducing overhang and aligning the investor’s interests with the company’s long-term growth.
The news comes as Scinai continues to position itself as a dual-focus biopharmaceutical company, combining revenue-generating CDMO services with high-potential immunotherapy research. The expansion of the CDMO platform could enable Scinai to capture more business from biotechnology and pharmaceutical clients seeking development and manufacturing expertise, while the immunotherapy pipeline offers potential long-term value if clinical candidates succeed.
For more details, the full press release can be viewed at https://ibn.fm/eUtYO. The latest news and updates relating to SCNI are available in the company’s newsroom at https://ibn.fm/SCNI.
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