Sinovac Biotech Ltd Stock Price, News & Analysis

SINOVAC Biotech's Board issued a critical letter to shareholders regarding an upcoming Special Meeting on July 9, 2025, where shareholders will vote on an attempt by the Dissenting Investor Group to remove the current board. The letter outlines how Prime Success and Vivo Capital acquired shares through an invalid PIPE transaction authorized by an "Imposter Board" that was deemed illegitimate by the UK Privy Council. The current board, reconstituted in February 2025, has announced a $55 per share special dividend and plans an additional $11 per share redistribution upon cancellation of unauthorized PIPE shares. The board warns that the Dissenting Investor Group previously distributed $2 billion in dividends to themselves while valid shareholders received nothing, and attempted to buy out SINOVAC at $7 per share. The letter emphasizes the board's commitment to restoring shareholder value, resuming NASDAQ trading, and ensuring fair treatment of all shareholders.

Vivo Capital, an 8% stakeholder in Sinovac Biotech (NASDAQ:SVA), issued a letter addressing what they claim are false statements from Sinovac's Board. The dispute centers on corporate governance issues, including contested Board composition and dividend distribution. Key issues include the resignation of Grant Thornton Zhitong as independent auditor, delayed SEC filings, and NASDAQ compliance concerns. Vivo defends its PIPE investment and convertible bond contributions, which were crucial for CoronaVac vaccine development. The firm highlights its $24M support to Sinovac Life Sciences, plus a $7.5M convertible bond investment, and facilitation of $527M additional capital. The letter precedes a July 8, 2025 special shareholder meeting for Board elections, with Vivo claiming the current Board is attempting to illegally exclude certain shareholders from participating.

Prime Success LP, owning 8% of Sinovac Biotech (NASDAQ: SVA), has issued a letter to shareholders regarding the July 8, 2025 Special Meeting, advocating for change in the Board of Directors. The letter supports SAIF Partners' slate of director nominees, who commit to: distributing a $55/share dividend and future dividends fairly, reinstating NASDAQ trading, improving corporate governance, and fostering sustainable growth. Prime Success criticizes the current Board for causing trading halts since 2019, impeding dividend distributions, engaging in wasteful litigation, attempting questionable dividend schemes, and creating operational uncertainty leading to the external auditor's resignation. The management team has publicly called for new Board elections, highlighting the severity of internal conflicts.

Sinovac Biotech Ltd. (NASDAQ: SVA) has received a notification from Nasdaq on May 16, 2025, regarding its non-compliance with Nasdaq Listing Rule 5250(c)(1) due to the late filing of its 2024 Annual Report. The company has until July 15, 2025 to submit a compliance plan to Nasdaq. If accepted, Sinovac may receive an extension until November 11, 2025, to regain compliance.

The delay stems from the resignation of Grant Thornton Zhitong Certified Public Accountants LLP as the company's independent auditor on April 15, 2025. Sinovac's audit committee is currently evaluating potential new accounting firms to complete the 2024 Annual Report filing.

Sinovac Biotech (NASDAQ: SVA), a leading Chinese biopharmaceutical company, has announced key dates for its previously declared special cash dividend. The company will distribute US$55.00 per common share to shareholders.

Key details of the dividend distribution:

• Record Date: May 23, 2025 (close of business, ET)
• Payment Date: Expected around July 9, 2025
• Dividend Amount: $55.00 per common share
• Payment Method: Cash

This special dividend announcement follows the company's initial declaration made on April 1, 2025. The payment will be made to valid holders of Sinovac's common shares as recorded by the specified date.

Sinovac Biotech board of directors issued a public letter to shareholders addressing hostile actions by Vivo Capital. The key dispute centers around a US$55.00 per share special cash dividend announcement and board legitimacy following a 2018 Annual General Meeting.

The situation stems from a January 2025 Privy Council ruling that validated the 2018 board election results, declaring the former Vivo-controlled board as "imposters." The new board aims to distribute dividends to shareholders who received nothing for seven years, while Vivo Capital, through a subsidiary, already received over US$800 million in dividends from 2021-2024.

Key developments include the resignation of auditor Grant Thornton, NASDAQ trading halt since 2019, and disputes over a PIPE investment. The board plans to set aside additional US$11.00 per share pending PIPE shares cancellation. The company is working toward resuming NASDAQ trading and implementing the dividend plan despite legal challenges from Vivo Capital.

Vivo Capital has initiated multiple legal actions against Sinovac Biotech (NASDAQ:SVA) and its current Board of Directors, controlled by 1Globe Capital . The lawsuits follow the January 2025 decision by the Judicial Committee of the Privy Council that retroactively replaced four Board members with 1Globe nominees.

The new Board's controversial actions include resisting shareholder requests for special meetings, suggesting potential cancellation of 16% of Sinovac's common stock, and excluding Vivo's Board representative. These actions led to the resignation of Sinovac's independent auditor, Grant Thornton, who cited inability to rely on Board resolutions and management representations.

The legal proceedings include lawsuits in Antigua and Barbuda High Court, New York Supreme Court, and U.S. District Court of Massachusetts, aimed at protecting shareholder interests and preventing further actions that could destroy shareholder value. Trading of Sinovac's stock has been halted since 2019, and the company's NASDAQ status is at risk without a replacement auditor.

Sinovac Biotech (NASDAQ: SVA) shareholder Heng Ren Partners has sent a follow-up letter to Sinovac's Board on April 8, 2025, demanding disclosure of record and payment dates for the previously announced $55 per share special cash dividend. The letter also urges for an additional dividend of $41 per share, which would bring the total distribution to $96 per share.

Heng Ren argues that even after the proposed total dividend distribution, Sinovac would retain over $1.3 billion in net cash, deemed sufficient for operations. The shareholder highlights concerns about the company holding excess cash, referencing a June 2023 SEC inquiry about distribution limitations. According to Heng Ren, Sinovac's current cash reserves could finance nearly nine years of capital expenditures, even without revenue or operating cash flow.

Sinovac Biotech (NASDAQ: SVA) has announced a significant special cash dividend of US$55.00 per common share. The dividend will be funded from the company's available cash resources, including prior distributions from Sinovac Life Sciences Co., and other operating subsidiaries to Sinovac Biotech (Hong Kong)

Following a recent Privy Council court order, which confirmed the legitimacy of the board of directors elected at the February 6, 2018 Annual General Meeting, the Board is reviewing previous corporate actions. This includes assessment of the 11,800,000 common shares issued in July 2018 through a securities purchase agreement with Vivo Capital, and Prime Success, L.P. (2018 PIPE Shares). The dividend amount corresponding to these shares will be retained by the company pending final resolution of related issues.