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BEIJING - Sinovac Biotech Ltd. (NASDAQ:SVA), a biopharmaceutical company with a current market capitalization of $37.16 million, announced Wednesday that its July 8 Special Meeting of Shareholders was validly adjourned by Chairman Chiang Li pending resolution of litigation in Antigua regarding the validity of 11.8 million shares. InvestingPro data shows the company’s stock has declined 48% over the past year, reflecting ongoing corporate governance challenges.
The adjournment comes amid an ongoing dispute over shares purportedly issued following a private investment in public equity (PIPE) to Advantech/Prime and Vivo Capital, referred to as the Dissenting Investor Group. The company’s financial health score is rated as WEAK by InvestingPro, with analysts setting price targets ranging from $0.44 to $4.38 per share.
According to the company’s press release statement, the meeting was adjourned to "preserve the integrity of the Special Meeting and protect shareholder interests" until an Antigua court can make a final decision on the validity of these shares.
The company rejected claims by SAIF and what it terms the "Imposter Former Board" that they reconvened the adjourned meeting and announced voting results, calling such actions "deceptive and illegal."
William P. Fiske, Head of M&A and Contested Situations at Georgeson, Sinovac’s proxy solicitor, stated that preliminary voting tallies showed "overwhelming support from valid shareholders for the current Sinovac Board" on the company’s White Proxy Card.
The dispute centers on implementation of a UK Privy Council judgment and order, which includes resolving questions about the validity of the PIPE shares.
Sinovac Biotech is a China-based biopharmaceutical company focused on vaccine development and production. Its product portfolio includes vaccines for COVID-19, hepatitis A, influenza, and other infectious diseases.
The current Board maintains it remains the only valid board of directors and will continue to govern the company while seeking resolution to the dispute. Trading at $0.12 per share, between its 52-week range of $0.11 to $0.24, InvestingPro analysis indicates the stock is currently trading at Fair Value, with additional insights available for subscribers.
In other recent news, Sinovac Biotech Ltd. has started distributing a special cash dividend of $55 per share to its shareholders. The company has confirmed that dividend checks are being sent via overnight delivery, with large payments processed through wire transfers. This dividend payment comes amid ongoing governance disputes involving Sinovac’s current board and a group of dissenting investors. The board has also announced plans for additional dividends totaling $30 per share, contingent on certain legal outcomes. Meanwhile, Vivo Capital, an 8% shareholder, has challenged Sinovac’s board statements, supporting fair dividend payments and expressing concerns over governance issues. The board has been defending itself against attempts to remove it, describing these efforts as being led by an "Imposter Board." Sinovac has been engaged in legal battles to maintain its board’s legitimacy and has reported victories in New York and Hong Kong. The company is also working with NASDAQ to resume trading and is exploring potential listings on the Hong Kong Stock Exchange.
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