VBI Vaccines (VBIV) Raises $50 Million In Debt Financing

By Amit Chowdhry ● May 28, 2020
  • Commercial-stage biopharmaceutical company VBI Vaccines Inc (NASDAQ:VBIV) announced that it has entered into a debt financing facility for up to $50 million with K2 HealthVentures (K2HV)

Commercial-stage biopharmaceutical company VBI Vaccines Inc (NASDAQ:VBIV) announced that it has entered into a debt financing facility for up to $50 million with K2 HealthVentures (K2HV), which is a healthcare-focused specialty finance company. Upon the closing of the deal, VBI received the first tranche of $20 million and fully repaid the company’s previous $15 million loan facility with Perceptive Advisors. And future tranches of up to $20 million will become available to the company upon achievement of certain regulatory and developmental milestones. And a final tranche of up to $10 million will be available at the discretion of K2HV.

VBI Vaccines Inc. (Nasdaq: VBIV) is a commercial-stage biopharmaceutical company developing a next-generation of vaccines to address unmet needs in infectious disease and immuno-oncology. And VBI is advancing the prevention and treatment of hepatitis B with the only tri-antigenic hepatitis B vaccine, Sci-B-Vac — which is approved for use and commercially available in Israel and recently completed its Phase 3 program in the U.S., Europe, and Canada, and with an immunotherapeutic in development for a functional cure for chronic hepatitis B. Plus VBI’s enveloped virus-like particle (eVLP) platform technology enables development of eVLPs that closely mimic the target virus to elicit a potent immune response. VBI’s lead eVLP programs include a vaccine immunotherapeutic candidate targeting glioblastoma (GBM), a prophylactic cytomegalovirus (CMV) vaccine candidate, and a prophylactic pan-coronavirus vaccine candidate.

Armentum Partners served as financial advisor to VBI on this transaction.

Key Quotes:

“This partnership with K2HV complements our recent $57.5 million equity raise, strengthening the financial position and flexibility of VBI as we advance our pipeline candidates through their next clinical and regulatory milestones, including the potential commercial launch of Sci-B-Vac in the U.S., Europe, and Canada. Throughout this investment process, the K2HV team has proven to have a deep understanding of our business and the science driving VBI, and we look forward to continued collaboration.”

– VBI’s president and CEO Jeff Baxter

“We are excited to support VBI’s efforts at such a pivotal time for the company. This financing is in line with our strategy of investing in innovative life sciences and healthcare companies whose success will help to improve outcomes for patients and enhance public health more broadly.”

– Anup Arora, Founding Managing Director and Chief Investment Officer of K2HV