aibioScinai Immunotherapeutics raises $1.38 million through Yorkville equity line drawdowns
Tickers SCNI
The sales were priced at about $3.03 per ADS, a 3% discount to market. Scinai also says a cost-cutting program will lower annual employment costs by about $815,000.
Key facts
- Company
- Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI)
- News type
- Financings
- Primary source
- Scinai Immunotherapeutics Ltd. 6-K (2025-06-12)
Scinai Immunotherapeutics Ltd. (Nasdaq: SCNI) said in a June 12, 2025 press release that it raised $1.38 million in gross proceeds during the week before, through drawdowns under a Standby Equity Purchase Agreement with Yorkville Advisors. Under such an agreement, the company can sell shares to the investor on request over time. The drawdowns were executed at a volume-weighted average price of about $3.03 per American depositary share, which the release describes as a 3% discount to market. The company says the funding came without warrants, fees or other dilution mechanisms.
The release names Yorkville Advisors as the investor under the agreement. It names no placement agent, underwriter or financial adviser for the drawdowns, and it does not name counsel for either side.
Two business units
The Jerusalem company describes itself as having two units. The first develops inflammation and immunology biological products, beginning with a pipeline of nanosized VHH antibodies, also called nanoAbs. The second is a boutique contract development and manufacturing business, which provides biological drug development, analytical methods development, clinical cGMP manufacturing, and trial design and execution for early-stage biotech projects.
The release says the company is now accelerating supplier and partner talks to advance its nanobody pipeline toward IND-enabling studies. The release does not give a date for them.
Revenue guidance and breakeven
The release says first-quarter 2025 results showed rapid growth in contract manufacturing revenue, nearly matching full-year 2024 revenue for that business in a single quarter. Scinai has issued 2025 revenue guidance of about $2 million. It expects the contract manufacturing unit to reach breakeven by the end of 2026, with long-term revenue potential of $12 million a year under a single production shift, scalable with more shifts. The release does not give the 2024 revenue figure, the first-quarter revenue amount or the cost base behind the breakeven estimate.
Cost cuts
Scinai has put in place a cost-reduction program that it expects to lower annual employment-related expenses by about $815,000. The company says the program aims to reduce its operating burn and extend its financial runway, while keeping its core scientific and operational staff. The release does not state the company's cash balance or its burn rate, so the $1.38 million raised cannot be measured against them from this document.
Why the funding matters
The company's own annual report, filed May 7, 2025, describes it as a developmental-stage biopharmaceutical company with a history of operating losses and with no product candidate that generates revenue. The same report says it may never become profitable and may need to wind up its business and operations. It also says it will need substantial additional financing to achieve its goals.
The annual report lists the risk that a failure to meet Nasdaq's continued listing requirements could lead to delisting of its American depositary shares. It also lists dependence on partners for development and commercialization, the operating risks of its Israeli base and dilution from future capital raises. On the contract manufacturing side, it warns that there is no guarantee the strategy will succeed or that the company will become profitable.
The June release says the proceeds strengthen the balance sheet. Each drawdown issues shares to the investor at a discount to market, which the release puts at 3%, so existing holders absorb the new shares. Its own 2025 revenue guidance and breakeven target are management forecasts, not results.
Timing and the conference
The release was issued as Chief Executive Amir Reichman prepared to attend the BIO International Convention 2025 in Boston, June 16 to 19, to meet pharmaceutical executives, institutional investors and contract manufacturing customers. The release lists the company's Nasdaq listing risk and capital-raising risk among its forward-looking warnings.