VBI Vaccines Completes Major Sales Process with K2 VBI Equity Trust

VBI Vaccines Completes Sales Process with K2 VBI Equity Trust

VBI Vaccines Inc., a biopharmaceutical firm based in Cambridge, Massachusetts, has officially concluded its sales process as part of its restructuring initiative. The company has been operating under the Companies' Creditors Arrangement Act (CCAA) and recently announced the completion of its transaction with K2 VBI Equity Trust, LLC, affiliated with K2 HealthVentures LLC. This significant step marks the company's departure from its creditor protection proceedings and sets the stage for a new chapter in its operations.

On January 3, 2025, VBI Vaccines disclosed that the acquisition agreement, initially effective on October 24, 2024, received endorsement from the Ontario Superior Court of Justice on October 31, 2024. Following this court approval, VBI proceeded with completing the necessary transactions. This agreement, which was amended from the original, involved the cancelation of all outstanding common shares of VBI, effectively making VBI Vaccines and its subsidiaries — VBI Vaccines (Delaware) Inc. and Variation Biotechnologies Inc. — wholly-owned subsidiaries of K2. This transition not only includes the financial undertakings but also significant corporate governance changes, as all prior directors and executives of VBI have resigned and have been succeeded by nominees from K2.

As part of the restructuring, VBI plans to apply for an order to cease being a reporting entity under Canadian securities laws across all jurisdictions wherein it is currently registered. This move signifies that VBI will no longer be obligated to file ongoing disclosures. The company is also expected to deregister its common shares under the U.S. Securities Exchange Act of 1934.

This strategic sale and restructuring is predicted to enable VBI to stabilize its operations while providing the necessary capital and support from K2. VBI has made a mark in the biopharmaceutical industry with its innovative virus-like particle (VLP) technology designed to stimulate robust immune responses. By restructuring under new ownership, the company aims to leverage its proprietary platforms and develop advanced vaccine candidates.

The management of VBI extended its gratitude to the previous directors and executives for their leadership throughout this transition. In the challenging landscape of biopharmaceuticals, especially amidst ever-increasing regulatory requirements and market demands, such changes are crucial for sustainable growth and innovation.

For additional information about the transaction and its implications for the future of VBI, stakeholders are encouraged to review the press release dated December 10, 2024, available on the Company’s SEDAR+ profile at www.sedarplus.ca.

In conclusion, VBI's completion of its sale to K2 VBI Equity Trust marks a significant milestone for the company. As it embarks on this new journey, VBI Vaccines Inc. is poised to continue its mission of advancing vaccine technology and addressing public health challenges head-on with renewed vigor and resources.