Scinai Immunotherapeutics (SCNI) stock rocketed higher on Friday after the development-stage biopharmaceutical company announced $2.61 million in private placement financing. The company has entered into a securities purchase agreement with an institutional life sciences investor, as well as with other new and existing institutional and accredited investors.
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Under the terms of this securities purchase agreement, Scinai Immunotherapeutics will sell these investors 5,208,333 American Depositary Shares (ADS), each representing 4,000 ordinary shares. These ADS will be sold for 48 cents each. Each ADS will also come with a Series A and Series B warrant to acquire another 5,208,333 shares. The Series A warrants will have an exercise price of 48 cents, while the Series B warrants will have an exercise price of 55 cents. The Series A warrants will expire in two years, and the Series B warrants will expire in five years.
To go along with today’s securities purchase agreement announcement, Scinai Immunotherapeutics also said it would enact a warrant inducement. Institutional investors holding warrants for 229,310 shares of SCNI stock have agreed to exercise them for 48 cents each. These investors will also receive warrants for another 458,621 shares with an exercise price of 55 cents.
Scinai Immunotherapeutics Stock Movement Today
Scinai Immunotherapeutics stock was up 53.53% in premarket trading on Friday, following a 16.02% fall yesterday. The shares have dropped 35.96% year-to-date and 81.85% over the past 12 months.
With today’s news came heavy trading of SCNI stock, as more than 33 million shares changed hands. For comparison, the company’s three-month average daily trading volume was about 101,000 shares.
Is Scinai Immunotherapeutics Stock a Buy, Sell, or Hold?
Turning to Wall Street, traditional analyst coverage of Scinai Immunotherapeutics is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates SCNI stock as Neutral with a 59-cent price target. It cites “weak financial performance (ongoing losses, negative gross profit, and continued cash burn) despite an improved capital structure with much lower debt” as reasons for this stance.
