Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
BEIJING - Sinovac Biotech Ltd. (NASDAQ:SVA), a vaccine manufacturer with a market capitalization of $39.56 million and currently trading at $0.12 per share, has called on shareholders to vote against proposals that would remove its current board of directors at a Special Meeting scheduled for July 9, according to a statement based on a company press release. InvestingPro analysis indicates the company’s overall financial health score is WEAK, adding context to the ongoing governance dispute.
The current board is defending its position against what it describes as an attempt by a group of dissenting investors, including Advantech/Prime Success and Vivo Capital, to reconstitute what the UK Privy Council previously ruled in January 2025 was an "Imposter Board."
In its appeal to shareholders, Sinovac’s current board highlighted its dividend declarations since taking control four months ago, including a $55.00 per common share special cash dividend scheduled for payment on July 7, 2025. The board has also announced plans for additional dividends totaling $30.00 per share, with potential for more if disputed PIPE shares are canceled. With the stock down 50.75% over the past year, these dividend announcements come at a crucial time. For more detailed dividend analysis and exclusive insights, check out InvestingPro, which offers over 20 additional financial metrics and ProTips.
The company stated it has engaged with NASDAQ officials to work toward resuming trading of its shares, which have been halted since 2019. The board also reported it is exploring a potential future listing on the Hong Kong Stock Exchange. Analyst price targets for the stock range from $0.44 to $4.39, suggesting significant potential upside if trading resumes successfully.
According to the release, the current board is fighting legal challenges in multiple jurisdictions that it claims are designed to interfere with dividend payments to shareholders. The company reported it has prevailed against Advantech/Prime in legal proceedings in New York and Hong Kong.
The Special Meeting will take place on July 9, 2025, at 8:00 a.m. China Standard Time. Shareholders will vote on proposals to remove the current board and appoint what Sinovac describes as a "Reconstituted Imposter Former Board Slate."
Sinovac Biotech focuses on the development, manufacturing, and commercialization of vaccines for infectious diseases, with products including vaccines for COVID-19, hepatitis A, and influenza.
In other recent news, Sinovac Biotech Ltd. has accelerated the payment of its previously declared $55 per share special dividend to July 7, ahead of a special shareholder meeting. The company also declared a second special cash dividend of $19 per share, with an additional $3.73 per share possible pending certain legal outcomes. This comes amid a governance dispute involving a "Dissenting Investor Group" led by Advantech/Prime Success and Vivo Capital, who have filed lawsuits challenging the board’s legitimacy. Vivo Capital, holding an 8% stake in Sinovac, has publicly contested the board’s statements on governance and dividend plans, while expressing concern over recent board actions, including the resignation of its independent auditor and delayed SEC filings. The company has received a non-compliance notice from NASDAQ, requiring a compliance plan submission by July 15, 2025. Additionally, Sinovac recently made a routine regulatory filing with the SEC, submitting a Form 6-K to provide information similar to a Form 10-K for U.S.-based companies. This filing did not include any specific financial results or operational updates. Sinovac’s ongoing board dispute and regulatory issues continue to be closely watched by investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.