Scinai Immunotherapeutics Announces Closing of $4.0 Million Financing Through a Private Placement and Warrant Inducement

The approximately $4.0 million excludes future exercise proceeds from newly issued warrants and is before placement agent fees and expenses.

Rhea-AI Summary

Scinai Immunotherapeutics (NASDAQ: SCNI) closed a private placement and warrant inducement transaction, receiving approximately $4.0 million in aggregate gross proceeds. The placement included 2,458,334 American Depositary Shares (ADSs), or pre-funded warrants in their place, plus warrants for up to 3,687,501 ADSs. Existing warrants for up to 879,194 ADSs were exercised at a reduced price of $1.20 per ADS, with additional warrants issued for up to 1,318,791 ADSs.

Scinai estimates an operating runway to late 2027 based on its operating plan, cash resources, financing proceeds and expected customer collections and sales. Activation of later customer-program phases and associated receipts, after delivery costs, could extend runway into 2028. Both estimates depend on sales, collections, timely payments and execution, and remain subject to customer termination rights and changes in plans and costs.

3 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointFinancing closed with approximately $4.0 million in aggregate gross proceeds received. 3.3× market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Scinai estimates operating runway to late 2027; later customer-program phases could extend it into 2028.
• Minor point. Forward-looking: it has not happened yet and may not happen.Scinai plans to fund customer programs, additional CDMO contracts and selective immunotherapy pipeline investment.

Negative

• Major pointPrivate placement issued 2,458,334 ADSs or pre-funded warrants, diluting existing holders.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Later customer-program work packages are not yet committed; their activation underpins potential runway extension into 2028.
• Minor pointPrivate placement included Series A-1 warrants for up to 3,687,501 ADSs, creating potential dilution.
• Minor pointExisting warrants for up to 879,194 ADSs were exercised at a reduced $1.20 per ADS.
• Minor pointWarrant inducement added Series A-1 warrants for up to 1,318,791 ADSs, creating potential dilution.

2 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Runway estimates depend on sales, collections, timely customer payments and execution, with customer termination rights and cost changes.
• Minor pointGross proceeds are subject to placement agent fees and expenses.

News Explained

Net proceeds, together with existing cash, are intended for customer programs, additional CDMO contracts and selective immunotherapy work.

The placement has closed; pre-funded warrants issued in place of ADSs convert into ADSs when exercised, while the new Series A-1 warrants could add more ADSs if exercised, reducing existing holders’ percentage ownership. The $4.0 million in gross proceeds excludes any future proceeds from exercising the new warrants.

The private-placement securities and New Warrants are unregistered, and Scinai has agreed to file an SEC resale registration statement; resale registration remains a future step.

Key Figures

Gross proceeds: Approximately $4.0 million Private-placement ADSs: 2,458,334 ADSs Series A-1 warrants: Up to 3,687,501 ADSs +4 more

Gross proceeds

Approximately $4.0 million

Combined private placement and warrant inducement; before fees and expenses

Private-placement ADSs

2,458,334 ADSs

Issued or pre-funded warrants in lieu

Series A-1 warrants

Up to 3,687,501 ADSs

Issued with the private placement

Existing warrants exercised

Up to 879,194 ADSs at $1.20 per ADS

Immediate exercise at a reduced exercise price

New Series A-1 warrants

Up to 1,318,791 ADSs

Issued in the warrant inducement transaction

Estimated operating runway

To late 2027

Based on the company's current operating plan and stated assumptions

Potential runway extension

Into 2028

Conditional on activation of later phases and associated cash receipts

Previous Private placement Reports

1 past event · Latest: Oct 14

Same Type 1 event

1. Oct 14

   Private placement

   24h Move

   -30.0%

   Announced the same financing terms and expected October 15 closing, which this release confirms completed.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

pre-funded warrants, american depositary shares, warrant inducement, regulation d

4 terms

pre-funded warrants financial

"ADSs (or pre-funded warrants in lieu thereof)"

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

american depositary shares financial

"2,458,334 American Depositary Shares ("ADSs")"

American depositary shares (ADSs) are a way for investors in the United States to buy shares of foreign companies without dealing with international markets directly. They represent ownership in a foreign company's stock and are traded on U.S. stock exchanges, making it easier for American investors to buy, sell, and own parts of companies from around the world.

warrant inducement financial

"closing of its previously announced immediate exercise of warrants"

Warrant inducement is when a company offers new warrants—options to buy shares at a set price—as a sweetener to persuade investors, lenders, or shareholders to approve a deal or provide financing. Investors should care because these extra warrants can dilute existing ownership if exercised, change the company’s future share supply and potential upside, and alter the risk/reward balance much like giving a coupon that could reduce future prices for original buyers.

regulation d regulatory

"Section 4(a)(2) of the Securities Act and Regulation D"

Regulation D is a set of rules that govern how companies can raise money from investors without going through the full process required for public stock offerings. It provides simplified options for private placements, making it easier for companies to seek investments from a smaller group of investors. For investors, it offers opportunities to invest in private companies, often with fewer restrictions, but also with different levels of risk and disclosure.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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JERUSALEM, Oct. 16, 2026 /PRNewswire/ -- Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI) ("Scinai" or the "Company"), a biopharmaceutical company operating a growing contract development and manufacturing organization ("CDMO") alongside an immunology-focused therapeutic development platform, today announced the closing of its previously announced private placement of 2,458,334 American Depositary Shares ("ADSs") (or pre-funded warrants in lieu thereof), each ADS representing 40,000 ordinary shares, together with Series A-1 Warrants to purchase up to 3,687,501 ADSs (the "Private Placement").

In addition, the Company has closed the previously announced immediate exercise of warrants to purchase up to 879,194 ADSs (the "Existing Warrants") at a reduced exercise price of $1.20 per ADS and issuance of additional Series A-1 Warrants to purchase up to 1,318,791 ADSs (the "New Warrants").

With the transactions now closed and proceeds received, the Company intends to use the net proceeds, together with its existing cash resources, to advance current customer programs, pursue additional CDMO contracts and continue selective investment in its immunotherapy pipeline.

"Completing this financing, alongside our recently announced CDMO agreement, strengthens our ability to execute customer programs, develop our CDMO platform and selectively advance our immunotherapy pipeline," said Amir Reichman, Chief Executive Officer of Scinai. "The recent CDMO agreement establishes a framework for an integrated program with successive phases, and we are looking towards the later work packages to become committed as the program progresses.

"Based on our current operating plan and budget, existing cash resources, net financing proceeds and expected cash collections under committed customer orders and our broader CDMO sales plan, we estimate an operating runway to late 2027. Activation of the later phases, together with the associated cash receipts and after accounting for their delivery costs, could extend that runway into 2028. Both estimates depend on achievement of our sales and collection assumptions, timely customer payments and successful execution, and remain subject to customer termination rights and changes in our plans and costs. We may consider financing opportunities from time to time to support our strategic objectives, pursue growth opportunities or address evolving business needs."

The aggregate gross proceeds from the private placement and the warrant inducement transaction were approximately $4.0 million, before deducting placement agent fees and expenses. These proceeds exclude any future proceeds from the exercise of the newly issued Series A-1 warrants.

A.G.P./Alliance Global Partners acted as the sole placement agent for the transactions.

ABOUT THIS OFFERING

The ADSs issued upon exercise of the Existing Warrants have been registered for resale pursuant to the Company's effective registration statement on Form F-3 (File No. 333-295698). The ADSs and warrants issued in the private placement, the New Warrants and the securities underlying those warrants have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws. The offer and sale of the securities in the private placement and the New Warrants was made in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder. Accordingly, these unregistered securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. The Company has agreed to file a registration statement with the SEC to register for resale the ADSs issued in the private placement, the ADSs issuable upon exercise of the pre-funded warrants and New Warrants, and the underlying ordinary shares.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Scinai Immunotherapeutics

Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI) is a biopharmaceutical company operating a growing contract development and manufacturing organization alongside an immunology-focused therapeutic development platform.

Through its wholly owned subsidiary, Scinai Biopharma Services Ltd., the Company provides development and manufacturing services to biotechnology and pharmaceutical companies at its facilities in Jerusalem and Yavne, Israel. Scinai also advances its NanoAb platform through research collaboration and license arrangements with the Max Planck Society and University Medical Center Göttingen, both in Germany.

For more information, please visit: www.scinai.com

Company Contacts

Business Development | +972 8 930 2529 | bd@scinai.com

Investor Relations, Allele Capital Partners | Brian DeBeer | +1 (561) 388-8178 | Brian.DeBeer@scinai.com

Forward-Looking Statements

This press release contains forward-looking statements under applicable U.S. securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, among other things, statements regarding the anticipated use of proceeds; the expected benefits of the financing; the Company's liquidity, cash runway and future financing needs; expected customer cash collections; anticipated activation, timing and performance of additional CDMO work packages; and the expansion of its CDMO platform and advancement of customer programs and its immunotherapy pipeline.

Actual outcomes may differ materially from current expectations. Relevant risks include changes in operating plans, budgets or capital requirements, including those arising from growth opportunities; technical, analytical, manufacturing, quality or regulatory difficulties; delays in equipment, materials or third-party services which can lead to delays in payments; changes in customer requirements or development plans; failure or delay in agreeing final scope and pricing or obtaining bilateral written activation and related purchase orders for additional work packages; contractual modification or termination, including termination for convenience; delayed payments; failure to meet milestones; and differences between anticipated billings, cash collections and recognized revenue. Additional risks include financing requirements and the availability of additional capital on acceptable terms, market conditions, competition, geopolitical conditions and the other risks described in the Company's Annual Report on Form 20-F and subsequent filings with the U.S. Securities and Exchange Commission.

Forward-looking statements reflect expectations as of the date of this release. Scinai undertakes no obligation to update them except as required by law.

 

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SOURCE Scinai Immunotherapeutics Ltd.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Scinai raise in its private placement and warrant inducement?

Scinai received approximately $4.0 million in aggregate gross proceeds from the closed transactions, before placement agent fees and expenses. That amount excludes any future proceeds from exercise of the newly issued Series A-1 warrants.

How long does Scinai expect its cash runway to last after the financing?

Scinai estimates an operating runway to late 2027, with a potential extension into 2028 if later customer-program phases activate and generate receipts after delivery costs. Both estimates depend on sales and collection assumptions, timely payments and execution, and remain subject to customer termination rights and changes in plans and costs.

What will Scinai use the financing proceeds for?

Scinai intends to use the net proceeds, together with existing cash resources, to advance current customer programs, pursue additional contract development and manufacturing contracts, and continue selective investment in its immunotherapy pipeline.