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Business Wire
09-07-2025
- Business
- Business Wire
SINOVAC Board of Directors Announces Adjournment of Special Meeting of Shareholders Until Appropriate Court Can Make a Final Decision on the Validity of the PIPE Shares
BEIJING--(BUSINESS WIRE)--The Board of Directors of SINOVAC Biotech Ltd. (NASDAQ: SVA) (' SINOVAC ' or the ' Company '), a leading provider of biopharmaceutical products in China, today announced that the Special Meeting of Shareholders (the 'Special Meeting') held on Wednesday, July 9, 2025 at 8:00 a.m. China Standard Time (Tuesday, July 8, 2025 at 8:00 p.m. Atlantic Standard Time) has been adjourned, pending resolution of litigation in Antigua related to the validity of shares issued following an invalid private investment in public equity ('PIPE') to Advantech/Prime and Vivo Capital (together known as the 'Dissenting Investor Group'). The PIPE transaction was authorized by the former board, deemed an 'Imposter Board' by the UK Privy Council in an unappealable ruling in January 2025. Given the ongoing litigation and provisional nature of the Court of Appeal's decision to stay the prohibition of Vivo Capital and Advantech/Prime from voting the disputed shares, the Special Meeting was adjourned until the appropriate court can make a final and non-appealable decision regarding the validity of the PIPE shares and if they can be voted at a meeting of the Company. ANTIGUA COURT DECISION On July 7, 2025, the Eastern Caribbean Supreme Court of Antigua and Barbuda (the 'Antigua Court') granted an interim injunction prohibiting the holders of the PIPE shares from voting those shares at the Special Meeting, pending the Antigua Court's determination of its jurisdiction and the validity of those shares. In his decision, presiding Justice Tunde Ademola Bakre determined there were serious issues presented to the Court. He stated that the issue of whether the PIPE shares were properly allotted, or not, would need to be carefully evaluated. The Judge determined that a refusal of the injunction would cause an irredeemable loss, while the grant of the application may only cause a temporary setback for Prime/Advantech and Vivo Capital if eventually their shares are adjudged to have been properly issued. Advantech/Prime immediately filed an appeal with the Eastern Caribbean Court of Appeal seeking a temporary stay of the injunction order pending a hearing of their stay application. The Court of Appeal temporarily stayed the injunction order. SINOVAC has not yet had the opportunity to respond. Additionally, today, Justice Bakre dismissed an application by Vivo Capital for a stay of the injunction order, which was argued by lawyers for each of Vivo Capital, Advantech/Prime, and the Company before the High Court of Antigua. The Board has a fiduciary duty to respond to all legal proceedings on behalf of SINOVAC, as well as implement the Privy Council's judgment and order. In the meantime, the Board continues to govern the Company and remains committed to its mission of restoring fairness, delivering value and protecting the rights of all valid shareholders. The Board will continue to prioritize dividend distributions according to its previously announced policy, work with NASDAQ to resume trading, and explore a future listing on the Stock Exchange of Hong Kong to promote liquidity and maximize value creation. The Board deeply appreciates the overwhelming support received from shareholders throughout this process. ADDITIONAL INFORMATION For more details on the misdeeds and shareholder harm caused by the Imposter Former Board and Dissenting Investor Group, visit our website If you have questions about how your vote can be counted, please contact our proxy solicitor, Georgeson LLC, toll free at (844) 568-1506 in the U.S. and (646) 543-1968 outside the U.S. or via email at SinovacSpecialMeeting@ If you have questions about the dividend payment process, please contact the Dividend Information Agent: D.F. King & Co., Inc., 28 Liberty Street, 53rd Floor, New York, NY 10005, Attention: Sinovac Biotech Ltd. Special Dividend; Email: sva@ with a subject line of Sinovac Biotech Ltd, Special Dividend. About SINOVAC Sinovac Biotech Ltd. (SINOVAC) is a China-based biopharmaceutical company that focuses on the R&D, manufacturing, and commercialization of vaccines that protect against human infectious diseases. SINOVAC's product portfolio includes vaccines against COVID-19, enterovirus 71 (EV71) infected Hand-Foot-Mouth disease (HFMD), hepatitis A, varicella, influenza, poliomyelitis, pneumococcal disease, etc. The COVID-19 vaccine, CoronaVac®, has been approved for use in more than 60 countries and regions worldwide. The hepatitis A vaccine, Healive®, passed WHO prequalification requirements in 2017. The EV71 vaccine, Inlive®, is an innovative vaccine under "Category 1 Preventative Biological Products" and commercialized in China in 2016. In 2022, SINOVAC's Sabin-strain inactivated polio vaccine (sIPV) and varicella vaccine were prequalified by the WHO. SINOVAC was the first company to be granted approval for its H1N1 influenza vaccine Panflu.1®, which has supplied the Chinese government's vaccination campaign and stockpiling program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine, Panflu®, to the Chinese government stockpiling program. SINOVAC continually dedicates itself to new vaccine R&D, with more combination vaccine products in its pipeline, and constantly explores global market opportunities. SINOVAC plans to conduct more extensive and in-depth trade and cooperation with additional countries, and business and industry organizations. Important Additional Information and Where to Find It In connection with SINOVAC's Special Meeting, SINOVAC has filed with the U.S. Securities and Exchange Commission ('SEC') and mailed to shareholders of record entitled to vote at the Special Meeting a definitive proxy statement and other documents, including a WHITE proxy card. SHAREHOLDERS ARE ENCOURAGED TO READ THE PROXY STATEMENT AND ALL OTHER RELEVANT DOCUMENTS WHEN FILED WITH THE SEC AND WHEN THEY BECOME AVAILABLE BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION. Investors and other interested parties will be able to obtain the documents free of charge at the SEC's website, or from SINOVAC at its website: You may also obtain copies of SINOVAC's definitive proxy statement and other documents, free of charge, by contacting SINOVAC's Investor Relations Department at ir@ Safe Harbor Statement This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'may,' 'will,' 'expect,' 'anticipate,' 'aim,' 'estimate,' 'intend,' 'plan,' 'believe,' 'potential,' 'continue,' 'is/are likely to' or other similar expressions. Such statements are based upon current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's or Board's control, which may cause actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company and Board do not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
Yahoo
09-07-2025
- Business
- Yahoo
Appeal Decision By Eastern Caribbean Supreme Court Supports Right of Prime Success and Vivo Capital to Participate in Critical Sinovac Biotech Shareholder Vote
Decision Stays Attempt of 1Globe to Disenfranchise Shareholders PALO ALTO, Calif., July 09, 2025--(BUSINESS WIRE)--Vivo Capital ("Vivo" or "we"), a leading global investment firm focused exclusively on healthcare and life sciences and a long term shareholder of Sinovac Biotech Ltd. (NASDAQ:SVA) ("Sinovac" or the "Company"), today announced that the Court of Appeals of the Eastern Caribbean Supreme Court granted a motion to stay the self-interested injunction sought and led by 1Globe to prevent legitimate, long-term shareholders in the Company from participating in its critical shareholder vote. The decision confirmed Vivo and Prime Success were permitted to attend and vote in the July 8th shareholder meeting as valid shareholders. Allowing 1Globe's actions to proceed would have harmed shareholder rights and undermined the integrity of the Company's governance structure, and Vivo thanks the Court for granting the stay. Since its 2018 investment in Sinovac, Vivo has contributed immensely to the Company's success to the benefit of all shareholders, including by providing incremental investment vital to the success of CoronaVac. By contrast, 1Globe obtained control of Sinovac by unscrupulous, dishonest, and criminal conduct and by surreptitiously purchasing its position in the open market without contributing a single dollar or otherwise providing any support to the Company. Vivo has remained steadfast in its mission to restore trust in Sinovac's governance, and ultimately, position the Company to resume trading and return cash to shareholders. About Vivo Capital Founded in 1996, Vivo Capital is a leading global healthcare investment firm with a diverse, multi-fund investment platform spanning venture capital, growth equity, buyout, and public equities. The Firm has approximately $5.3 billion in regulatory assets under management and has invested in over 430 public and private companies globally. Headquartered in Palo Alto, California, the Vivo team consists of more than 75 multi-disciplinary professionals. Vivo invests broadly in healthcare across multiple sub-sectors, including biotechnology, pharmaceuticals, medical devices, and healthcare services, with a focus on the largest healthcare markets globally. View source version on Contacts MediaPro-Vivo@
Yahoo
07-07-2025
- Business
- Yahoo
Federal Court in Massachusetts Denies Vivo Capital's Petition for Relief on SINOVAC
Court denies Vivo Capital's petition for relief relating to shareholder votes and corporate governance, clearing another legal hurdle for distribution of the US$55.00 per common share special cash dividend Marks fourth unsuccessful legal attempt in deceptive and disparaging campaign by Advantech/Prime or Vivo Capital against current Board and its Chairman New reports from two leading independent proxy advisory firms, Glass Lewis and ISS, firmly recommend shareholders vote to KEEP the current Board chaired by Dr. Chiang Li BEIJING, July 07, 2025--(BUSINESS WIRE)--The Board of Directors of SINOVAC Biotech Ltd. (NASDAQ: SVA) ("SINOVAC" or the "Company"), a leading provider of biopharmaceutical products in China, today announced that on June 30, the United States District Court for the District of Massachusetts denied Vivo Capital's petition against 1Globe Capital LLC ("1Globe") for relief relating to SINOVAC's shareholder votes and corporate governance. In its ruling, the Court concluded, "relief relating to governance outcomes or shareholder votes – are DENIED without prejudice." The Massachusetts ruling marks the fourth unsuccessful legal attempt by either Advantech/Prime Success ("Advantech/Prime") or Vivo Capital (together "the Dissenting Investor Group") to strip SINOVAC common shareholders of their rightful dividend payments. This result follows Advantech/Prime's recently failed petition in New York and Advantech/Prime and Vivo Capital's recently failed petition in Hong Kong – which were repeated attempts to block or delay a hearing for interim relief sought by the Company et al at the Antiguan High Court and to interfere with the Company's payment of the US$55.00 per common share special cash dividend declared by the current SINOVAC Board. The Dissenting Investor Group continues to interfere with the current Board's fiduciary duties to implement the UK Privy Council's unappealable ruling in January 2025. In this ruling, the UK Privy Council deemed the former illegitimate board an "Imposter Board" and handed 1Globe – the investment arm of a cancer-focused global R&D group and SINOVAC's largest shareholder – a victory on all grounds. In addition, the UK Privy Council Judicial Committee, comprising five UK Supreme Court Justices, concluded that there was "nothing unlawful in the conduct of 1Globe" in connection with SINOVAC's 2018 AGM. The Dissenting Investor Group's self-serving, multi-pronged lawfare strategy is crystal clear: (1) block actions taken by the SINOVAC Board to distribute rightful dividend payments to valid SINOVAC common shareholders; (2) protect the ill-gotten gains it stripped from SINOVAC subsidiaries over the past seven years; and (3) regain control of SINOVAC in order to continue to loot the Company. Having failed in the courtroom, the Dissenting Investor Group has decided to instead use deceptive and false stories to attack 1Globe and its founder Dr. Chiang Li, who chairs the current SINOVAC Board. As noted in SINOVAC's proxy materials, Dr. Li is an accomplished clinician, scientist, inventor, entrepreneur and a seasoned executive with international recognitions. Dr. Li and 1Globe have successfully challenged the Dissenting Investor Group's abuse in court for the past seven years and championed the rights and interests of all valid SINOVAC shareholders. During those seven years, The Dissenting Investor Group, in coordination with the former illegitimate board (the "Imposter Former Board"), pursued the following schemes: Privatization attempt at a below-market price in 2016, which would have succeeded had it not been for the efforts of 1Globe (who declined an invite by the Former Management Buyout Group to join and profit from its privatization attempt); Invalid PIPE transaction at a below-market price in 2018, which materially diluted SINOVAC shareholders and was made at a time when the Company did not need the capital; Commitment by the Imposter Former Board to invest ~US$139 million of SINOVAC cash into a venture fund managed by Vivo Capital – creating a clear conflict of interest. This would be in addition to the approximately US$100 million SINOVAC has already invested into Vivo Capital funds. US$15 million debt investment into Sinovac Life Sciences Co., Ltd. ("SLS"), a wholly owned subsidiary of SINOVAC, in exchange for a 15% equity interest in SLS in 2020, at a time when the Company did not need the capital and which has resulted in over US$1 billion of distributions made to the Dissenting Investor Group. In contrast, SINOVAC common shareholders have received no dividends and haven't been able to trade their shares for the past six years. To add insult to injury, the Imposter Former Board publicly stated in April 2024 in the Company's 2023 20-F that it had "no plan to pay any cash dividends on SINOVAC Antigua's shares in the foreseeable future"; Barrage of baseless and wasteful legal action in 2025, after refusing to accept the Privy Council's non-appealable ruling, with the goal of interfering with the dividend payment unless the Dissenting Investor Group is able to double dip on dividends already received from SLS; Deceptive and disparaging campaign against current SINOVAC board members that is meant to intimidate them and interfere with the stability and function of the current Board. The Dissenting Investor Group's hostile actions, baseless claims and wasteful litigation are evidence that it poses a direct threat to the value of your investment and the future of SINOVAC. Don't let the Dissenting Investor Group, which is working in coordination with SAIF and is represented on SAIF's Reconstituted Imposter Former Board, regain control of the Company. If the Reconstituted Imposter Former Board succeeds, it will put all valid shareholders' future dividend payments at risk – this includes the current Board's announced plans for an additional US$11.00 per common share cash dividend, contingent on the cancellation of the unauthorized PIPE shares, and its adopted policy to issue regular dividends out of surplus cash. The current SINOVAC Board remains committed to its mission of restoring fairness, delivering value, and protecting the rights of all valid shareholders. Your Vote is Important Your vote on or before July 8 will be about the future of SINOVAC, your receipt of your make-whole dividend payments in the near-term, and the long-term value of your investment. We urge you to keep SINOVAC's Board in place and vote on the WHITE proxy card "AGAINST" Proposal 1 to remove the current Board and "AGAINST" Proposal 2 to appoint the Reconstituted Imposter Former Board Slate. Your vote is critical to ensuring that SINOVAC remains on the path to stability, growth, and value creation for all shareholders. DISCARD any items you received asking you to vote for the Reconstituted Imposter Former Board Slate. If you have already voted for the Reconstituted Imposter Former Board Slate, you can subsequently revoke it by using the WHITE proxy card or WHITE voting instruction form to vote. Only your latest-dated vote will count! If you have questions about how your vote can be counted, please contact our proxy solicitor, Georgeson LLC, toll free at (844) 568-1506 in the U.S. and (646) 543-1968 outside the U.S. or via email at SinovacSpecialMeeting@ About SINOVAC Sinovac Biotech Ltd. (SINOVAC) is a China-based biopharmaceutical company that focuses on the R&D, manufacturing, and commercialization of vaccines that protect against human infectious diseases. SINOVAC's product portfolio includes vaccines against COVID-19, enterovirus 71 (EV71) infected Hand-Foot-Mouth disease (HFMD), hepatitis A, varicella, influenza, poliomyelitis, pneumococcal disease, etc. The COVID-19 vaccine, CoronaVac®, has been approved for use in more than 60 countries and regions worldwide. The hepatitis A vaccine, Healive®, passed WHO prequalification requirements in 2017. The EV71 vaccine, Inlive®, is an innovative vaccine under "Category 1 Preventative Biological Products" and commercialized in China in 2016. In 2022, SINOVAC's Sabin-strain inactivated polio vaccine (sIPV) and varicella vaccine were prequalified by the WHO. SINOVAC was the first company to be granted approval for its H1N1 influenza vaccine Panflu.1®, which has supplied the Chinese government's vaccination campaign and stockpiling program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine, Panflu®, to the Chinese government stockpiling program. SINOVAC continually dedicates itself to new vaccine R&D, with more combination vaccine products in its pipeline, and constantly explores global market opportunities. SINOVAC plans to conduct more extensive and in-depth trade and cooperation with additional countries, and business and industry organizations. Important Additional Information and Where to Find It In connection with SINOVAC's Special Meeting, SINOVAC has filed with the U.S. Securities and Exchange Commission ("SEC") and mailed to shareholders of record entitled to vote at the Special Meeting a definitive proxy statement and other documents, including a WHITE proxy card. SHAREHOLDERS ARE ENCOURAGED TO READ THE PROXY STATEMENT AND ALL OTHER RELEVANT DOCUMENTS WHEN FILED WITH THE SEC AND WHEN THEY BECOME AVAILABLE BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION. Investors and other interested parties will be able to obtain the documents free of charge at the SEC's website, or from SINOVAC at its website: You may also obtain copies of SINOVAC's definitive proxy statement and other documents, free of charge, by contacting SINOVAC's Investor Relations Department at ir@ Safe Harbor Statement This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Such statements are based upon current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's or Board's control, which may cause actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company and Board do not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law. View source version on Contacts Investor and Media Contact FGS GlobalSinovac@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-07-2025
- Business
- Yahoo
United States District Court of Massachusetts Bars Activist 1Globe Capital and Jiaqiang Li From Making Further Materially Misleading Statements Regarding Sinovac
Court Found That 1Globe and Li Likely Violated Disclosure Obligations; Mandates Both File Updated Disclosures Within 5 Days of Order Decision Cites Prolonged Pattern of Corruption and Deception by 1Globe and Li Vivo Calls on All Shareholders to Support SAIF's Slate of Qualified Nominees, Reject 1Globe's Deception, and Stand Up for Transparent Corporate Governance Ahead of Special Meeting of Shareholders on July 8, 2025 PALO ALTO, Calif., July 02, 2025--(BUSINESS WIRE)--Vivo Capital ("Vivo" or "we"), a leading global investment firm focused exclusively on healthcare and life sciences and a long-term shareholder of Sinovac Biotech Ltd. (NASDAQ:SVA) ("Sinovac" or the "Company"), today announced that the United States District Court of Massachusetts ("the Court") granted Vivo's motion for a preliminary injunction against 1Globe Capital, LLC and its owner Jiaqiang "Chiang" Li (collectively, "1Globe"), barring 1Globe from making further materially misleading statements regarding their shareholding or intentions with respect to Sinovac and mandating that they file an amended and accurate Schedule 13D disclosing their beneficial ownership interests, control relationships, group affiliations, and plans and proposals relating to Sinovac. Effectively, the decision compels 1Globe to "come clean" after years of deliberately circumventing proper disclosure laws to mislead other shareholders of their true ownership position and intentions regarding their investment in Sinovac. As Vivo demonstrated to Judge Myong J. Joun by a substantial likelihood, 1Globe failed to provide disclosures mandated by federal securities laws while they clandestinely formed a group with ally OrbiMed, took control of Sinovac's Board of Directors, carried out plans and proposals to weaken the corporate governance and business of Sinovac, and attempted to enrich themselves at the expense of all shareholders, including by attempting to illegally disenfranchise Vivo and certain other shareholders. Judge Joun cited multiple examples of 1Globe's coordinated activities that formed the background of their repeated disclosure violations, including: Mr. Li involved three relatives to discreetly build positions in Sinovac, later used to the activists' advantage in the 2018 Annual General Meeting for Shareholders ("AGM"); the relatives' stock positions and relations to Mr. Li were not publicly disclosed. In the lead-up to the 2018 AGM, and during 1Globe's legal battle against the Company, 1Globe failed to make any Sinovac-related disclosures until after the shareholder vote occurred. 1Globe and its allies were found by both the High Court of Hong Kong and a regulator from the People's Republic of China to have forged documents on separate occasions in 2018 and 2020, respectfully, to unlawfully change the directors of Sinovac subsidiaries. This decision affirms Vivo's efforts to restore transparent corporate governance at Sinovac. Given the precedent set by 1Globe, Vivo believes they, along with OrbiMed, will continue their attempts to harm and disenfranchise shareholders until and unless the Board is reconstituted. Vivo has remained steadfast in its mission to restore trust in the Company's governance, and ultimately, in the Company's ability to resume trading and return cash to shareholders, despite 1Globe's attempts to illegally exclude Vivo from exercising our lawful right to vote at the upcoming Special Meeting of Shareholders to be held on Wednesday, July 9, 2025 at 8:00 a.m. China Standard Time (Tuesday, July 8, 2025 at 8:00 p.m. Atlantic Standard Time). Vivo echoes the calls by other long-term shareholders, such as SAIF Partners and Prime Success, to remove the current Board, controlled by 1Globe, and vote the GOLD card in favor of SAIF Partners' qualified candidates, and to discard the Company's white card. If the new Board is elected, Vivo believes they will restore proper governance, a critical step to enable the Company to (i) retain a new auditor, (ii) accelerate the implementation of a legitimate, audited, and realistic dividend plan maximizing all shareholders' returns, (iii) get back on track towards restoring trading on the NASDAQ, and (iv) end all cost-consuming shareholder disputes. About Vivo Capital Founded in 1996, Vivo Capital is a leading global healthcare investment firm with a diverse, multi-fund investment platform spanning venture capital, growth equity, buyout, and public equities. The Firm has approximately $5.3 billion in regulatory assets under management and has invested in over 430 public and private companies globally. Headquartered in Palo Alto, California, the Vivo team consists of more than 75 multi-disciplinary professionals. Vivo invests broadly in healthcare across multiple sub-sectors, including biotechnology, pharmaceuticals, medical devices, and healthcare services, with a focus on the largest healthcare markets globally. View source version on Contacts MediaPro-Vivo@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-06-2025
- Business
- Yahoo
Vivo Capital Issues Letter to Sinovac Biotech Shareholders Addressing the Company's False and Misleading Claims
Affirms Support for Fair and Equitable Dividend Distribution for All Shareholders by Sinovac Corrects the Company's Misrepresentations of Vivo's Capital Contributions, Which Have Been Critical to Sinovac's Commercial Success and Ability to Return Capital to Shareholders Calls on All Shareholders to Stand up for Transparent Corporate Governance and Elect Qualified Directors to the Board at Upcoming Special Meeting on July 8 PALO ALTO, Calif., June 11, 2025--(BUSINESS WIRE)--Vivo Capital ("Vivo" or "we"), a leading global investment firm focused exclusively on healthcare and life sciences and an approximately 8% shareholder in Sinovac Biotech Ltd. (NASDAQ:SVA) ("Sinovac" or the "Company"), today sent a letter to shareholders. *** Dear Fellow Sinovac Shareholders, We, Vivo Capital ("Vivo"), write to you as fellow shareholders of Sinovac Biotech Ltd. ("Sinovac" or the "Company") to address a number of statements in the April 29, 2025 letter from Sinovac's Board of Directors (the "Board") that we believe are false, and to reaffirm our commitment to upholding the best interests of all shareholders and to transparent corporate governance. The Board has deceptively portrayed recent events as centering around a dispute with Vivo only. But the problem is at Sinovac's Board, not at Vivo. In fact, Sinovac's Board has precipitated a corporate governance crisis that threatens the Company's future growth and has eroded its credibility with all shareholders. After the Privy Council ruled in January that five (5) directors had been elected in February 2018 consistent with Antiguan law, a new Board was installed—but contrary to the claims of the Board, its composition did not match the slate the Privy Council had considered. With no transparency, multiple directors have purportedly resigned and been replaced within three months, casting substantial uncertainty over the Company's corporate governance and stability. Further, the Company's independent auditor, Grant Thornton Zhitong Certified Public Accountants LLP, resigned in response to the Board's April 1, 2025 statement that attempted to cast doubt on the validity of the Company's corporate actions over the past seven years.1 This resignation, in turn, prompted Sinovac's own management to publicly express concerns that the current Board's actions have disrupted Sinovac's compliant operations and governance.2 Further, dissatisfaction with the current Board does not just come from Vivo. Another major shareholder, SAIF Partners, formally requisitioned a special meeting of shareholders, which will be held on July 8, to elect new directors to the Board.3 In its April 29 letter, the Board continued its attempts to rewrite the Company's history. As shareholders, you will have an important decision regarding the future of your investment—so we want to ensure you have the accurate information regarding these matters: 1. Vivo supports the distribution of dividends. The Board's suggestion that Vivo aims to prevent shareholders from receiving dividends is false. As an investment firm, we fully expect the Company to distribute excess cash to all shareholders, including ourselves, as we are committed to fulfilling our fiduciary duties to our limited partners by seeking timely investment returns. However, the Board must ensure that any dividend payments are made lawfully and equitably, to the benefit of all shareholders, rather than by excluding long-time shareholders like Vivo for the personal benefit of individual Board members. 2. Vivo has never controlled the Company's Board. Since our PIPE investment in July 2018, Vivo has held approximately 8% of the Company's shares and has had only one representative on its six-seat Board. Contrary to the current Board's statement, Vivo has never sought nor possessed control of the Board or the Company. 1Globe and OrbiMed, on the other hand, who have now sued Vivo and another investor in Antigua, fully control the current Board with three purported seats held by directors of their choosing, two of whom were not on the slate proposed at the Annual General Meeting in February 2018 (the "AGM"), despite holding only a minority interest. 3. 1Globe's war against the Company directly led to NASDAQ trading halt. The Board has claimed that Vivo controlled the former Board and caused the NASDAQ trading halt. This is also false. The former Board was in place before Vivo's initial investment in the Company, which occurred six months after 1Globe ambushed the AGM. 1Globe subsequently launched a prolonged legal battle against the Company. As a result of the 1Globe litigation, the trading of Sinovac's stock was halted in February 2019. The recent resignation of the independent auditor has resulted in Sinovac's inability to timely file its annual report with the SEC,4 which in turn led to a notification of non-compliance from the NASDAQ.5 The Company is required to submit a plan to regain compliance by July 15, 2025 and may risk being delisted if the plan is not accepted by the NASDAQ. 4. Vivo made its PIPE investment in good faith, responding to the Company's financial needs. Vivo invested in Sinovac in July 2018, when the Company needed capital to launch two vaccine projects and to further develop its production facility in Beijing. At that time, the Company lacked surplus cash reserves and was unable to secure additional bank financing due to 1Globe's litigation against the Company. It was under these circumstances that we invested in the Company through the PIPE—an arm's length investment made in good faith. 5. Vivo's capital contributions were critical to successful development and commercialization of COVID-19 vaccine. At the beginning of 2020, Sinovac's Beijing operating entity Sinovac Life Sciences Co., Ltd. ("SLS") was in a dire situation, as the capital required for the development and production of CoronaVac far exceeded its available funds. Vivo aided in at least three ways: First, the cash injection from the PIPE investment enabled Sinovac to provide approximately $24 million in total to SLS for CoronaVac's development. Second, when 1Globe's protracted lawsuit led to the NASDAQ trading halt and prevented Sinovac from securing additional financing, Vivo and its co-investor each provided $7.5 million to SLS through a convertible bond structure in May 2020, ensuring the successful completion of CoronaVac's clinical trials. Vivo made this investment notwithstanding the significant uncertainties around CoronaVac's viability and profitability as it had not even completed its Phase I clinical trial at that time. Third, Vivo introduced additional investors to SLS, who subsequently provided $527 million of much-needed additional capital for ramping up CoronaVac's production at the end of 2020. SLS enjoyed a higher valuation in this round, because by then China had approved CoronaVac's emergency use, Phase III clinical trials were underway globally, a key production facility had begun operations, and the Company had received vaccine purchase orders from customers. Vivo's contributions were vital to the success of CoronaVac and have benefitted all shareholders. By contrast, 1Globe purchased all of its Sinovac shares from the open market without contributing a single dollar, or otherwise providing any support, to the Company. 6. There is no "double-dip" attempt by Vivo in receiving dividends. The Board misleadingly asserted that Vivo intends to "double‑dip" on dividends. As explained above, Vivo made two separate investments in the Company, including the PIPE investment in the holding company and the convertible bond investment in SLS, both of which were essential in supporting the success of the CoronaVac. These were arm's length transactions based on public trading price and/or independent third-party fairness opinions. Although SLS has issued dividends (including dividends to Sinovac, the public parent company, proportionate to its ownership), Vivo, like our fellow shareholders, has never received any dividend for its shareholding in the holding company. The Board's recent actions, including its threat to invalidate the PIPE transaction notwithstanding 1Globe's inability to obtain such relief in seven years of litigation in Antigua, left Vivo with no choice but to initiate legal proceedings. Vivo is litigating not just to protect its own interests, but the interests of all shareholders. We are gravely concerned about the Board's improper actions which have directly undermined the Company's governance and precipitated the current crisis, as evidenced by the resignation of the Company's independent auditor, the Company's delayed filing of its annual report with the SEC, and its receipt of notification of non-compliance from the NASDAQ. Our position is clear: all shareholders deserve to be treated fairly and equitably. Importantly, the Board's current actions risk harming all shareholders, as the Board's attempt to disenfranchise long-term shareholders like Vivo sets an alarming precedent of how it values and rewards key investors and how it views the legal and contractual obligations of the Company. Indeed, the Board is now attempting to illegally exclude Vivo and another long-term shareholder from the July 8 shareholders meeting. These actions would, among other things, make it harder for Sinovac to attract investors in the future, hurting the Company and all of its shareholders. We urge all of our fellow shareholders to join us in helping to restore trust in the Company's governance. We appreciate your continued support as we work to ensure the Company's future is built on integrity, transparency, and respect for all stakeholders. Sincerely, Vivo Capital LLC About Vivo Capital Founded in 1996, Vivo Capital is a leading global healthcare investment firm with a diverse, multi-fund investment platform spanning venture capital, growth equity, buyout, and public equities. The Firm has approximately $5.3 billion in regulatory assets under management and has invested in over 430 public and private companies globally. Headquartered in Palo Alto, California, the Vivo team consists of more than 75 multi-disciplinary professionals. Vivo invests broadly in healthcare across multiple sub-sectors, including biotechnology, pharmaceuticals, medical devices, and healthcare services, with a focus on the largest healthcare markets globally. 1 Sinovac's Form 6-K filed with the U.S. Securities and Exchange Commission (the "SEC") dated April 21, 2025, available at 2 Press Release, Sinovac Management Statement Regarding Auditor Resignation, available at: 3 SAIF Partners IV L.P.'s Schedule 13D filed with the SEC, available at: 4 Sinovac's Form 12b-25 (Notification of Late Filings) filed with the SEC dated April 29, 2025, available at 5 Sinovac's Form 6-K filed with the SEC dated May 23, 2025, available at View source version on Contacts MediaPro-vivo@
