10:35 AM EDT, 07/08/2024 (MT Newswires) -- Scinai Immunotherapeutics ( SCNI ) said Monday that it has received an updated nonbinding letter of intent from the European Investment Bank, or EIB, to convert most of the bank's loan into equity.

The EIB plans to convert about $28 million of its loan to preferred Scinai shares that are convertible to American depositary shares equivalent to roughly 20% of the company's diluted capital at the time of closing, Scinai said.

About $270,000 of the loan will still be payable on Dec. 31, 2031, the company said.

The loan conversion remains subject to certain approvals and there is no guarantee that a final agreement will be executed, the company said.

Scinai said it expects the loan conversion to cure its noncompliance with Nasdaq's minimum shareholders' equity requirement for continued listing. It also plans to file financial statements for the quarter ended June 30 to regain Nasdaq compliance.

Shares of the company fell 1.6% in recent trading.

Price: 2.95, Change: -0.05, Percent Change: -1.63