Heng Ren Calls on Sinovac to Pay Shareholders the Special Dividend Before the July 8 Board Vote

Rhea-AI Summary

Heng Ren Silk Road Investments LLC, a shareholder of Sinovac Biotech Ltd. (NASDAQ: SVA), has issued an open resolution urging the company to pay the declared $55 special cash dividend before the July 8 board election, specifically suggesting July 7 as the payment date. The resolution aims to remove uncertainty surrounding the dividend payment, which was originally scheduled for 'on or about' July 9. Heng Ren argues that paying the dividend before the board vote would eliminate concerns about a new board potentially canceling the dividend and allow shareholders to focus on evaluating board candidates' qualifications. The investment firm plans to host a webinar to discuss the voting process and related issues with shareholders.

Positive

• Declared special cash dividend of $55 per share shows strong cash position and shareholder return
• Company has ability to process significant dividend payment, indicating financial strength

Negative

• Uncertainty around dividend payment timing creates investor concern
• Corporate governance issues evident from contentious board election situation
• Risk of dividend cancellation if new board is elected

BOSTON, June 16, 2025 /PRNewswire/ -- Sinovac Biotech Ltd. (NASDAQ: SVA) shareholder Heng Ren Silk Road Investments LLC today sent an open resolution to Sinovac's shareholders outlining the decisive action that Sinovac's Board of Directors must take to pay shareholders the $55 cash dividend before the July 8 board vote, which would remove uncertainty, restore credibility and improve investor confidence in Sinovac.

The full text of the resolution follows:

Pay The $55 Dividend Before the July 8 Board Election

All Sinovac shareholders can agree on one issue: receiving dividends.

Heng Ren urges the Sinovac board to pay the declared $55 cash dividend before the July 8 vote for the board.

Here are the reasons:

• It's legitimate. The current board's announcement of the $55 special cash dividend payment date stated "on or about" July 9. Then Monday, July 7 should work. U.S. banks and stock exchanges are open for business.
• A July 7 payment date would remove uncertainty about the dividend. After the current board declared a $55 cash dividend to be paid "on or about" Wednesday, July 9, the election contest for the Sinovac board was scheduled for the day before, July 8.
• Given the drama surrounding Sinovac, it is not surprising that shareholders are worried that a different board might cancel the declared $55 dividend. Remove this worry. Pay the dividend on Monday, July 7 to shareholders.
• Paying the dividend on July 7 focuses shareholders on the qualifications of the candidates. It reduces the guessing about where candidates stand on the single issue of dividends, and allows for a more holistic and realistic consideration of the candidates' merits to serve shareholders.

This is a simple solution that would go a long way towards restoring credibility and investor confidence at Sinovac.

Peter Halesworth
Founder & CIO
Heng Ren Silk Road Investments LLC

Heng Ren Silk Road Investments LLC This week Heng Ren will invite shareholders to attend a webinar on the voting process and the issues before voters. Please review your voting materials and bring your thoughts and questions. See https://www.hengreninvestment.com/ and click "Sinovac Fairness" for details.

Contact:
info@hengreninvestment.com

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SOURCE Heng Ren Partners

FAQ

What is the amount of Sinovac's (SVA) special dividend payment?

Sinovac has declared a special cash dividend of $55 per share.

When is Sinovac's (SVA) board election scheduled?

Sinovac's board election is scheduled for July 8, 2025.

When was Sinovac's (SVA) dividend originally scheduled to be paid?

The dividend was originally scheduled to be paid 'on or about' July 9, 2025.

What is Heng Ren requesting from Sinovac (SVA)?

Heng Ren is requesting Sinovac to pay the $55 special dividend on July 7, before the July 8 board election.

Why does Heng Ren want Sinovac (SVA) to pay the dividend before the board vote?

To remove uncertainty about the dividend payment and ensure shareholders can focus on evaluating board candidates' qualifications without concerns about dividend cancellation.