VBI Vaccines Inc. (NASDAQ:VBIV) et al., a group of biopharmaceutical companies that develop vaccines, obtained CCAA protection on July 30 listing approximately $81 million in liabilities, including over $50 million to senior lender K2 HealthVentures.

VBI’s registered head office is in British Columbia, but its research operations and HR, cash management and accounting functions are located in Ottawa, Ontario (21 employees). VBI owns a number of international subsidiaries, including in Israel, where its manufacturing site is located (93 employees), and the US, where some management is located (11 employees).

The companies are experiencing significant cash flow issues. They have incurred significant net losses and negative operating cash flows since inception, and their revenues are currently minimal. In addition, they face intense competition and rapid technological change, making it difficult to achieve significant market penetration. The companies’ issues were only likely to compound given the lengthy, expensive and uncertain nature of the clinical development and drug testing process.

They filed for CCAA protection after a strategic process conducted throughout 2023 and the first half of 2024 failed to result in a viable transaction. The companies have sought recognition in the US and Israel.

EY is the monitor.

Counsel is Stikeman Elliott for the VBI Group, McCarthy Tétrault for the monitor, and McMillan for K2 HealthVentures.