VBI Vaccines Inc. Announces The Borrowers And The Lenders Have Agreed To Extend The Forbearance Period Until January 23, 2024, If Conditions Not Met, The Period Will Be Terminated And K2 HealthVentures LLC May Declare An Event Of Default
Portfolio Pulse from Benzinga Newsdesk
VBI Vaccines Inc. and its subsidiary VBI Cda, collectively known as the Borrowers, have extended their forbearance agreement with K2 HealthVentures LLC and other lenders until January 23, 2024. This agreement pertains to a covenant breach regarding minimum Net Revenue for the period ended September 30, 2023. The forbearance period has been extended multiple times, with the latest extension effective January 9, 2024. There is no guarantee that VBI Vaccines will meet the Forbearance Agreement conditions, which could lead to K2HV declaring an Event of Default. This would allow K2HV to demand immediate payment of all obligations and cease any further credit advances, with an additional interest penalty of 5.00% per annum.
January 11, 2024 | 9:25 pm
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VBI Vaccines Inc. has extended its forbearance period with lenders due to a covenant breach, with uncertainty about meeting the necessary conditions. This could lead to a default and immediate debt repayment, negatively impacting the company's financial stability.
The extension of the forbearance period indicates ongoing financial challenges for VBI Vaccines Inc. The lack of assurance in meeting the Forbearance Agreement conditions suggests a high risk of default, which could lead to immediate debt repayment and a significant increase in interest rates. This situation is likely to create negative sentiment among investors and could result in a decrease in the stock price in the short term.
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