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VBI VACCINES INC. FILES (8-K) Disclosing Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

August 14, 2014



Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On August 8, 2014, pursuant to that certain Credit Agreement and Guaranty (the "Credit Agreement"), dated as of July 25, 2014, by and among VBI Vaccines Inc. (the "Company"), Variation Biotechnologies (U.S.) Inc., a Delaware corporation and the Company's wholly-owned subsidiary ("VBI"), and PCOF 1, LLC (the "Lender"), the Company drew down $3,000,000 (the "Initial Loan") of a maximum $6,000,000 senior term loan facility (the "Facility"), evidenced by an initial term note in the principal amount of the Initial Loan (the "Initial Term Note").

Upon draw down of the Initial Loan, pursuant to that certain Pledge and Security Agreement (the "Security Agreement"), dated as of July 25, 2014, by and among the Company, VBI and its Canadian subsidiary (collectively, the "VBI Grantors") in favor of the Lender, the VBI Grantors granted a continuing security interest in and to substantially all the assets of the VBI Grantors as security for the loans made (or to be made) under the Facility.

The terms of the Facility, the Credit Agreement, the Initial Term Note and the Security Agreement, as more fully described under Item 1.01 of the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission (the "Commission") on July 28, 2014, are hereby incorporated herein by this reference.

The foregoing summary is only a brief description of the Credit Agreement, the Initial Term Note and the Security Agreement, does not purport to be complete and is subject to, and qualified in its entirety by, the full text of those documents, which are attached as exhibits to the Current Report on Form 8-K filed with the Commission on July 28, 2014.

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Source: Edgar Glimpses


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