BiondVax enters into Term Sheet to secure up to $7 Million

Feb. 25, 2010 - PRLog -- Ness Ziona, Israel – 24 February 2010 – BiondVax Pharmaceuticals Ltd. (TASE: BNDK), an Israeli biopharmaceutical company at the forefront of the development of a Universal Influenza Vaccine, today announced that it has signed a term sheet for a 3 year $7 million standby equity distribution agreement (SEDA) with YA Global Investments, L.P.  a fund managed by Yorkville Advisors, LLC located in New Jersey USA.

The SEDA will provide BiondVax with the option to request Yorkville, during the next 36 months, to subscribe for newly issued BiondVax shares, from the company’s authorized capital, in tranches of up to $250,000 each, subject to the Company’s right to determine a minimum price for each tranche below which the Company will not issue shares to Yorkville.  Subject to the applicable minimum price, the common shares will be issued to Yorkville at a predetermined discount, up to a maximum of 3%, to the lowest volume-weighted average price of one of the five trading days following the date of the relevant draw down notice.

The total aggregate value of this equity facility will be up to $7 million, provided that the number of shares issued to Yorkville in any one tranche shall not exceed 4.99% of the voting rights in BiondVax.  In addition, BiondVax will have the option to increase the size of the facility up to an aggregate of $15 million, on the same terms.    No warrants or any other debt or derivative instruments will be issuable by BiondVax under the SEDA.

The transaction remains subject to certain conditions precedent, including the signing of a final definitive agreement, the amendment of the Company’s shelf prospectus, the approval of the Israeli Securities Authority and the Tel-Aviv Stock Exchange and the approval of the Israeli Chief Scientist.  The Company will be able to freely terminate the SEDA at any time.

BiondVax CEO, Ron Babecoff, noted "With a number of clinical milestones upcoming over the next 3 years, a standby equity facility is well suited to our Company at this time.  In light of the recent success of our first Phase I/II trial, and the progress we are making towards the upcoming Phase II trials, BiondVax is considering the establishment of a pilot plant for the production of the Universal Influenza Vaccine according to the required international standards for advanced clinical trials.  Should we choose to access the SEDA facility, it will provide BiondVax with a flexible, low cost source of capital in an amount and at the time of our choosing, with a built-in minimum price.”

Matt Beckman, Managing Member at Yorkville Advisors, LLC, stated: “Yorkville is excited to participate in the future of BiondVax. BiondVax’s management understands the flexibility and benefits that the SEDA provides and we have no doubt that BiondVax will use this tool to most appropriately support the financial needs of the Company”.
   
For further information, please contact:

BiondVax Pharmaceuticals Ltd.:   
Dr. Ron Babecoff, President & CEO   Tel: +972-8-930-2529
info@biondvax.com

   
Media:   
Danny Aronovic
Public Relations Consultant
Gelbart-Kahana   
Tel: +972-9-899 5813
Mob: +972-50-799 1121
danny@gksmarketing.com

   
Notes to Editors
   
About BiondVax Pharmaceuticals Ltd.   
BiondVax Pharmaceuticals (“the Company”), a publicly-traded company (TASE: BNDK) based in Rechovot, Israel, is developing a proprietary, innovative Universal Influenza (“flu”) Vaccine with the potential to provide multi-season and multi-strain protection against most human influenza virus strains, including both seasonal influenza strains as well as pandemic influenza strains, such as Swine flu and Avian flu.

BiondVax's Universal Flu Vaccine is based on research carried out over a period of 20 years by Weizmann Institute Professor Ruth Arnon, who heads the Company's Scientific Advisory Board. Professor Arnon is well-known for her part in the development of Copaxone®, a blockbuster drug for the treatment of multiple sclerosis.  BiondVax holds a worldwide exclusive license granted by Yeda Research and Development Ltd., the commercial arm of the Weizmann Institute, Israel, for developing, manufacturing and commercializing this innovative Universal Flu Vaccine.BiondVax is currently testing its lead product, the Multimeric-001 Universal Influenza vaccine, in two Phase I/II clinical trials.

BiondVax’s team of 13 includes scientists, technicians, researchers, and administrative staff.  The Company’s state-of-the-art GMP facility, located in the Weizmann Science Park in Rechovot, houses its laboratories, production facilities, and offices.   
   
For further information on BiondVax, please visit the Company’s website: www.biondvax.com
For information on BiondVax in the news Please visit: http://www.biondvax.com/128084/BiondVax-in-the-News-1
For an online press kit: http://www.biondvax.com/128084/Press-Kit-1-1
   

Forward Looking Statements
Statements included herein that are not historical facts are “forward-looking statements” within the meaning of applicable securities laws. These forward-looking statements involve risks and uncertainties, including those identified within the “Risk Factors” section of the Company's Shelf Prospectus dated 26 November 2009.

Although management of the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company cannot assure investors that these expectations will prove correct, and the actual results that the Company achieves may differ materially from any forward-looking statements, due to such risks and uncertainties.

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BiondVax Pharmaceuticals, a publicly-traded company (TASE: BNDK) based in Rehovot, Israel, is developing a proprietary, innovative Universal Influenza (“flu”) Vaccine with the potential to provide protection against most human influenza virus strains.