SCNI - European Investment Bank (EIB) considering extending maturity of its financial facility contract with Scinai Immunotherapeutics in light of Scinai's recent strategic pivot | Benzinga
- Recently rebranded Scinai Immunotherapeutics shifted drug development focus from COVID-19 antibody to a novel antibody for the treatment of psoriasis and launched a CDMO business unit
- Adjusted terms being considered by EIB would extend maturity of finance facility and improve shareholders' equity
JERUSALEM, Oct. 31, 2023 (GLOBE NEWSWIRE) -- via IBN -- Scinai Immunotherapeutics Ltd. (NASDAQ:SCNI), a biopharmaceutical company focused on developing, manufacturing, and commercializing innovative inflammation and immunology (I&I) biological products primarily for the treatment of autoimmune and infectious diseases, today announced that its primary creditor, the European Investment Bank (EIB), is currently considering favorably adjusting the terms of the EIB's financial facility contract with the Company, in particular by extending the facility's maturity. Formal feedback from the EIB management regarding a definitive amendment to the facility is anticipated as soon as November 2023.
According to its website, the EIB is the lending arm of the European Union and is the biggest multilateral financial institution/economic development bank in the world, supporting projects that promote the priorities and objectives of the European Union. While the EIB undertakes a thorough due diligence process when first extending a financial facility or considering an adjustment to the terms, it also considers the potential impact on the recipient and structures its financial facilities "with terms that match the economic life of each project which can sometimes exceed 30 years." In this way EIB provides innovative young companies not only with required resources but also sufficient time to achieve their business goals and, at the same time, the EIB's impact objectives. The EIB's "long-term approach also provides stability, which matters enormously to many early-stage companies dealing with new technologies." In this sense the EIB is quite different from typical commercial lenders and venture debt lenders who prioritize relatively rapid repayment.
Currently, the EIB is considering extending a maturity of EIB's ...