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European Investment Bank Agrees in Principle to Extend the Maturity of its Loan until December 2027 with Additional Terms that Provide Continued Long-Term Support for BiondVax's New Strategy

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JERUSALEM, March 14, 2022 /PRNewswire/ -- BiondVax Pharmaceuticals Ltd. (Nasdaq: BVXV) announced today that it had been negotiating with the European Investment Bank (the "EIB") terms of restructuring of its outstanding €24 million loan (the "Loan"). The parties have reached a commercial agreement, which is still subject to EIB's formal approval of the new terms, that would entail the following:  

  • An extension of the maturity dates from 2023 (€20 million) and 2024 (€4 million) until December 2027.
  • Although the Loan has been outstanding since 2018, interest on the Loan will only begin to accrue starting January 1, 2022 at an annual rate of 7%. The interest payments will be deferred until the new maturity date and will be added to the principal balance at the end of each year during the Loan period. 
  • $900,000 will be paid by BiondVax as a reduction of principal shortly after the new terms become effective, and going forward 10% of any capital raises by BiondVax until maturity will be used to further repay the Loan principal. 
  • Once BiondVax's commercial sales exceed €5 million, 3% of BiondVax's topline revenues will be paid to EIB as royalties up to a combined maximum of 2.8 times the original €24 million principal.  
  • If BiondVax chooses to prepay any portion of the Loan (other than as required from future capital raises) the amount prepaid will be calculated such that the EIB realizes at least 20% IRR on its investment at the point of prepayment. 
BiondVax Pharmaceuticals Logo (PRNewsfoto/Biondvax Pharmaceuticals Ltd)

 

Amir Reichman, CEO of BiondVax, commented, "The EIB has been a loyal partner to BiondVax since 2018, having supported our activities and the building of our GMP biologics manufacturing site. The contemplated restructuring of our loan from the EIB would remove the near-term obligation to repay the loan and would allow us to continue to move forward with our activities at full throttle. I am very pleased that our partners at the EIB have chosen to continue to support BiondVax, allowing us to further develop and advance our new nanosized antibody (NanoAb) activities related to our recently announced exclusive license agreement and the five-year research collaboration agreement with the Max Planck Institute and University Medical Center Gottingen, Germany. Furthermore, the fact that the EIB considers tying a significant part of the loan restructuring scheme to our future sales signals its belief in our strategy and its trust in our scientific and leadership team at BiondVax. I would like to thank the EIB's officers involved in these negotiations for their thorough work and collaborative approach."  

The EIB is currently undergoing an internal approval process regarding the new terms of the Loan. If the new terms are approved by EIB's management committee, BiondVax and the EIB would aim to sign an amendment agreement in the second quarter of 2022. Until the definitive amendment is signed, the new terms described above are not legally binding on the EIB and there is a risk that the definitive amendment will not be signed.  

About BiondVax 

BiondVax Pharmaceuticals Ltd. (Nasdaq: BVXV) is a biopharmaceutical company focused on developing, manufacturing and commercializing innovative products for the prevention and treatment of infectious diseases and other illnesses. Since its inception, the company has executed eight clinical trials including a seven country, 12,400 participant Phase 3 trial of its universal influenza vaccine candidate and has built a state-of-the-art manufacturing facility for biopharmaceutical products. With highly experienced pharmaceutical industry leadership, BiondVax is aiming to develop a pipeline of diversified and commercially viable products and platforms, beginning with an innovative nanosized antibody (NanoAb) pipeline. www.biondvax.com

Contact Details 

Company: Joshua E. Phillipson | +972 54 223 3860 | j.phillipson@biondvax.com 

Investor Relations: Kenny Green | +1 212 378 8040 | kgreen@edisongroup.com 

 

Forward Looking Statements  

This press release contains forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Words such as "expect," "believe," "intend," "plan," "continue," "may," "will," "anticipate," and similar expressions are intended to identify forward-looking statements. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. Examples of such statements include, but are not limited to, statements regarding execution of a definitive amendment agreement with EIB. These forward-looking statements reflect management's current views with respect to certain current and future events and are subject to various risks, uncertainties and assumptions that could cause the results to differ materially from those expected by the management of BiondVax Pharmaceuticals Ltd. Risks and uncertainties include, but are not limited to, the risk that BiondVax will not execute an additional agreement with the Max Planck Society and the University Medical Center Göttingen or that it will be delayed; the risk that the therapeutic and commercial potential of NanoAbs will not be met; the risk of a delay in the preclinical and clinical data for NanoAbs, if any; the risk that BiondVax and EIB will not reach agreement with respect to the restructuring of the loan from European Investment Bank; the risk that BiondVax may not be able to secure additional capital on attractive terms, if at all; the risk that the European Investment Bank may accelerate the loans under its finance contract with BiondVax; risks relating to the COVID-19 (coronavirus) pandemic; BiondVax's ability to acquire rights to additional product opportunities; BiondVax's ability to enter into collaborations on terms acceptable to BiondVax or at all; timing of receipt of regulatory approval of BiondVax's manufacturing facility in Jerusalem, if at all or when required; the risk that the manufacturing facility will not be able to be used for a wide variety of applications and other vaccine and treatment technologies, and the risk that drug development involves a lengthy and expensive process with uncertain outcomes. More detailed information about the risks and uncertainties affecting the Company is contained under the heading "Risk Factors" in the Company's prospectus supplement filed with the Securities and Exchange Commission on December 28, 2021. BiondVax undertakes no obligation to revise or update any forward-looking statement for any reason.

 

 

 

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SOURCE BiondVax Pharmaceuticals Ltd.

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Health Technology, Pharmaceuticals: Major, Manufacturing, Biological Product (except Diagnostic) Manufacturing