Biopharmaceutical Company Issues Restructuring Proceedings Update
VBI Vaccines: Restructuring Proceedings Update.
Disclaimer: The following article provides detailed and factual information regarding the restructuring proceedings of VBI Vaccines Inc. (Nasdaq: VBIV). It is intended solely for informational purposes and not as financial or legal advice. For further details and personalized advice, please consult with a qualified professional.
Real-time information is available daily at https://stockregion.net
VBI Vaccines Inc. (Nasdaq: VBIV), a biopharmaceutical company driven by immunology in its pursuit of powerful prevention and treatment of diseases, has recently provided an update on its restructuring proceedings. This update follows the company's announcement on July 30, 2024, regarding their entry into restructuring proceedings due to financial and operational difficulties.
U.S. Chapter 15 Filing
On August 2, 2024, the United States Bankruptcy Court for the District of Delaware granted provisional relief under Chapter 15 of the U.S. Bankruptcy Code. Chapter 15 deals with cross-border insolvency and aims to provide effective mechanisms for dealing with cases of cross-border insolvency and to promote cooperation between U.S. courts and parties of interest in foreign proceedings.
The court scheduled a further hearing to consider the recognition of the order issued by the Ontario Superior Court of Justice (Commercial List) on July 30, 2024. This order, known as the “Initial Order,” granted VBI protection under the Companies’ Creditors Arrangement Act (CCAA), a Canadian federal law that offers companies a chance to restructure their financial affairs without immediate threat from creditors. The provisional relief granted by the U.S. Bankruptcy Court is a significant step for VBI as it seeks to protect its assets and operations while undergoing restructuring. The process aims to stabilize the company during this period of financial distress and to facilitate a comprehensive restructuring plan that will be beneficial to all stakeholders involved.
In a related development, on July 30, 2024, VBI received a letter from the listing qualifications department staff of the Nasdaq Stock Market LLC ("Nasdaq"). The letter notified VBI that its common shares would be delisted from Nasdaq, effective as of the opening of business on August 8, 2024. VBI has decided not to appeal this delisting determination. The delisting from Nasdaq is a significant event for the company, impacting its visibility in the public markets and potentially affecting investor confidence. However, the company may explore other avenues for listing its shares in the future as part of its broader restructuring strategy.
Legal Advisors and Monitoring
VBI has engaged various legal advisors to assist with the restructuring process. These advisors include:
Stikeman Elliott LLP: A leading Canadian business law firm with expertise in insolvency and restructuring.
Haynes and Boone, LLP: A prominent U.S. law firm known for its corporate and litigation practices.
Morris, Nicols, Arsht & Tunnell LLP: A well-respected Delaware-based law firm with extensive experience in bankruptcy and restructuring matters.
Pearl Cohen Zedek Latzer Baratz: An international law firm specializing in intellectual property and commercial law.
Additionally, Ernst & Young Inc. (EY) has been appointed as the Monitor in the CCAA proceedings. The Monitor's role is crucial in overseeing the restructuring process, ensuring transparency, and protecting the interests of creditors and other stakeholders. EY will also oversee the proposed sale and investment solicitation process (SISP), which will explore potential sale or investment opportunities to enhance the company’s financial position.
About VBI Vaccines Inc.
VBI Vaccines Inc. ("VBI") is a biopharmaceutical company dedicated to harnessing immunology for the prevention and treatment of infectious diseases and cancers. The company's innovative approach involves the use of virus-like particles (VLPs), which aim to mimic the natural presentation of viruses to elicit a strong immune response.
Enveloped VLP (eVLP) Platform Technology: This proprietary technology enables the development of vaccine candidates that closely resemble actual viruses. These candidates are designed to trigger a robust immune response by leveraging the body's innate immune system.
mRNA-Launched eVLP (MLE) Platform Technology: Another proprietary technology, the MLE platform, uses messenger RNA (mRNA) to produce eVLPs. This cutting-edge approach combines the benefits of mRNA technology with the potent immunogenicity of eVLPs.
Disease Targets
VBI Vaccines focuses on a few critical areas:
Hepatitis B: The company is developing vaccines to prevent hepatitis B infection, which remains a global health challenge.
Coronaviruses: In response to the COVID-19 pandemic, VBI is working on potential vaccine candidates to combat coronaviruses.
Cytomegalovirus (CMV): CMV is a common virus that can cause severe disease in immunocompromised individuals and newborns. VBI is targeting this virus with its innovative vaccine technologies.
Glioblastoma (GBM): VBI is exploring vaccines for GBM, an aggressive form of brain cancer. The company aims to harness the power of the immune system to target and eliminate cancer cells.
VBI Vaccines is headquartered in Cambridge, Massachusetts, a hub for biotech innovation. The company maintains research operations in Ottawa, Canada, and operates a research and manufacturing site in Rehovot, Israel. This global presence allows VBI to leverage diverse expertise and resources to advance its mission. The restructuring proceedings initiated by VBI Vaccines Inc. mark a critical phase in the company’s journey. With the granting of provisional relief under Chapter 15 and the protection afforded by the CCAA, VBI is taking necessary steps to stabilize its financial situation and chart a path forward.
Legal advisors and the appointed Monitor, Ernst & Young Inc., play pivotal roles in navigating this complex process. Meanwhile, VBI continues to focus on its core mission of developing innovative vaccines targeting infectious diseases and cancers. As the company progresses through these proceedings, stakeholders are encouraged to stay informed through official channels and direct communications with the Monitor. VBI’s commitment to transparency and stakeholder engagement remains paramount as it seeks to emerge stronger and more resilient.
Disclaimer: The above article provides an update on the restructuring proceedings of VBI Vaccines Inc. based on publicly available information. For personalized financial or legal advice, please consult with a qualified professional.
Real-time information is available daily at https://stockregion.net