VBI Vaccines, a biopharmaceutical company, agreed to draw down a $12 million second tranche under its previously announced debt financing facility with K2 HealthVentures, a healthcare-focused specialty finance company.
Under the terms of the debt financing facility, dated May 22, 2020, and amended May 17, 2021, K2 HealthVentures agreed to provide VBI Vaccines up to $52 million in multiple tranches.
The first tranche of $20 million was drawn upon closing of the original agreement in May 2020. The second tranche, upsized to $12 million from the original $10 million, became available following the achievement of certain clinical milestones, including the positive 12-month overall survival data from Phase 2a (Part B) of the Phase 1/2a study of VBI-1901 in recurrent glioblastoma (GBM) patients and the positive proof-of-concept data from the Phase 1b/2a study of VBI-2601 in chronic hepatitis B (HBV) patients.
“Following the achievement of key clinical development milestones in our effort to develop treatments for GBM and chronic HBV, we are pleased to further strengthen our balance sheet and our partnership with the K2HV team, a team who continues to demonstrate their deep understanding of our business and the science driving VBI,” Jeff Baxter, president and CEO of VBI Vaccines, said.
Two additional tranches of up to $10 million each from the facility remain drawable in the future upon certain conditions. The first is contingent upon achievement of a specified regulatory milestone and the second and final tranche will be available at the discretion of K2 HealthVentures.
