Ontario · CCAA
Report of the Proposed Monitor
Pre-filing report · 29 July 2024
AI summary
A plain-English summary drawn only from this filing: what it is, why it matters, and the parties, amounts and dates it turns on.
What we verified from this filing3 verified
- financial positionnote: Stockholders' equity deficiency of $5.5M as at March 31, 2024; assets include $36.8M of intangible property and goodwill; approximately 60% of liabilities (~$48.8M net of debt discount) represents amounts due to secured lender K2HV · page: 9 · as at: 2024-03-31 · basis: Unaudited consolidated interim financial statements (carrying value); per Monitor's Report, based on the most recent publicly available consolidated financial statements for the 3-month period ended March 31, 2024 · scope: Consolidated - VBI Group (VBI Vaccines Inc. and all subsidiaries: VBI Cda, VBI DE, VBI US, SciVac, SciVac HK, VBI B.V.) · currency: USD · total assets: 75400000 · total liabilities: 80900000
- secured creditorsnote: Security granted July 5, 2023 to secure performance of VBI's obligations under the Brii Collaboration Agreements, the Supply Agreement, and the K2HV Loan Agreement; expressly subordinated to K2HV pursuant to a Subordination Agreement between Brii Bio and K2HV (cession of rank). No fixed amount stated. · page: 9 · as of: 2023-07-05 · debtor: VBI Vaccines Inc., Variation Biotechnologies Inc. (VBI Cda), SciVac Ltd. · creditor: Brii Biosciences Limited (Brii Bio) · currency: USD · security: Security interest in all right, title and interest in intellectual property, know-how and licenses related to PreHevbri and VBI-2601, and proceeds thereof
- secured creditorsnote: First-ranking secured creditor per Monitor's Report, which states amount owed as 'approximately $48.8M (net of debt discount)' as at March 31, 2024 (~60% of reported liabilities); exact carrying value per Note 9 to interim financial statements is $48,745K (net of unamortized debt discount of $4,454K). Note 9 separately states total gross principal amount outstanding at March 31, 2024, including the Original Final Payment ($2,224K) and Second Amendment Final Payment ($5,699K), was $53,199K. VBI Group was in forbearance following an event of default (failure to meet minimum Net Revenue covenant) prior to the Fourth Amendment dated February 13, 2024. · page: 24 · as of: 2024-03-31 · amount: 48745000 · debtor: VBI Vaccines Inc. and Variation Biotechnologies Inc. (VBI Cda) (Borrowers); guaranteed by SciVac, VBI DE and VBI US · creditor: K2 Health Ventures LLC (K2HV) · currency: USD · security: Senior lien on substantially all assets of VBI and its subsidiaries, including the bank account of VBI B.V., except for SciVac HK and VBI B.V. non-cash assets and liabilities