VBI Vaccines Inc. (NASDAQ: VBIV) (“VBI”, the “Company”) is the subject of an article published in Globes, Israel business news, on September 12, 2018, written by Gali Weinreb (the “Article”) alleging that VBI failed to meet its responsibilities of disclosure regarding a court case in Israel. Those allegations are not only false, but a gross mischaracterization of the facts. VBI holds itself to the highest standards of integrity and has been fully-compliant with disclosure requirements and regulations.
While there are numerous factual inaccuracies and misleading assumptions in the article, VBI believes it is appropriate and necessary to draw attention to a few specific allegations about the Company’s disclosure of the referenced agreement and associated court cases:
- The agreement referenced in the Article, which is between SciVac Ltd., a wholly-owned subsidiary of VBI, and Mr. Nir Izhaki, is a marketing and distribution agreement for the territories of China, Taiwan, and UN Agencies, with an appendix to include Hong Kong when a business opportunity to purchase Sci-B-Vac is presented by Mr. Izhaki to SciVac Ltd.
- In company filings, VBI discloses existing marketing and distribution agreements with an all-encompassing statement regarding the use of a network of distributors. Details regarding specific marketing and distribution agreements are only disclosed if, and when, they are deemed to be material agreements.
- Hong Kong is the only included region where Sci-B-Vac is approved, though substantial revenue has not been generated in this territory. Approvals in the other jurisdictions are likely several years away, and payments under Mr. Izhaki’s agreement are directly tied to actual sales in those territories, which may never occur in a material amount.
- Izhaki’s court claims are also immaterial relative to VBI’s current consolidated assets.
- Given the above, the agreement with Mr. Izhaki and his court claims are not material to the Company in any manner and VBI, accordingly, had no duty to specifically disclose either the agreement or Mr. Izhaki’s claims in its public filings.
- SciVac was not approached ahead of the publication of the Article, and, had the company been contacted, would have provided information and details that would have invalidated these allegations and corrected further misrepresentation.
VBI is currently evaluating what options are available to the Company and its stockholders to remedy the damage inflicted by this inaccurate and misleading article.