YS Biopharma Announces Results of Extraordinary General Meeting held on February 22, 2024

Rhea-AI Summary

YS Biopharma Co., Ltd. announces the results of its extraordinary general meeting held in Hong Kong. Shareholders voted in favor of resolutions including reaffirming directors, conducting an investigation, enhancing corporate governance, and removing a former chairperson.

Corporate Governance Expert

The resolutions passed at YS Biopharma's EGM indicate a significant shift in the company's corporate governance structure. The reaffirmation of the board members and the direction to investigate the alleged misconduct of the former chairperson suggest a proactive approach to transparency and accountability. Strengthening corporate governance can improve investor confidence and potentially lead to better risk management and strategic decision-making. However, such transitions can also be disruptive in the short-term, potentially impacting the company's operations and strategic initiatives.

Legal Expert

The authorization of an independent investigation into the alleged misconduct of the former chairperson is a critical legal matter. It demonstrates due diligence in addressing potential legal and ethical issues that could have severe implications, including regulatory scrutiny and legal liability. This move may also be indicative of a more aggressive stance by the company against malpractice, which could deter future misconduct. However, the legal process might be lengthy and costly and any findings could have reputational consequences for the company.

Financial Analyst

The decision to remove the former chairperson and to enhance internal controls is likely to be closely monitored by analysts and investors. These changes could signal a strategic pivot or a response to past shortcomings in management practices. Financially, the cost of the investigation and any subsequent legal actions must be weighed against the potential long-term benefits of improved governance. Moreover, the market typically responds to such news with a degree of volatility as investors reassess the company's future prospects.

GAITHERSBURG, Md., Feb. 22, 2024 /PRNewswire/ -- YS Biopharma Co., Ltd. (Nasdaq: YS) ("YS Biopharma" or the "Company"), a global biopharmaceutical company dedicated to discovering, developing, manufacturing, and delivering new generations of vaccines and therapeutic biologics for infectious diseases and cancer, today announced the results of its extraordinary general meeting (the "EGM") held on February 22, 2024 in Hong Kong. The Company's shareholders voted in favor of each of the following resolutions:

Resolution 1 : as an ordinary resolution, that the appointment of each of Haitao Zhao, Henry Chen, Pierson Yue Pan, Yuntao Cui, Jin Wang, Chunyuan (Brenda) Wu as a director of the Company is hereby reaffirmed, ratified and confirmed in all respects.

Resolution 2 : as an ordinary resolution, that the Company is hereby authorized and directed to conduct an independent investigation of any alleged misconduct and/or illegal activities of the Company caused by or under the control of Mr. Yi Zhang, the former chairperson of the Company's Board of Directors.

Resolution 3 : as an ordinary resolution, that the Company is hereby authorized and directed to take immediate actions to strengthen the Company's corporate governance and internal control and management as advised by counsel and other professionals.

Resolution 4 : as an ordinary resolution, that the Company is hereby authorized and directed to remove Mr. Yi Zhang from all positions with the Company and any subsidiaries of the Company, including without limitation as director, officer and/or legal representative.

As of 5:00 p.m. on the EGM's record date of February 16, 2024 (Hong Kong time), the Company had 188,327,959 ordinary shares issued and outstanding. Members holding 107,110,641 ordinary shares cast their votes at the EGM. The results of the vote on each of the resolutions submitted for shareholder approval at the EGM were 99,472,858 votes in favor and 6,508,744 votes against and 1,129,039 votes abstained.

About YS Biopharma

YS Biopharma is a global biopharmaceutical company dedicated to discovering, developing, manufacturing, and commercializing new generations of vaccines and therapeutic biologics for infectious diseases and cancer. It has developed a proprietary PIKA® immunomodulating technology platform and a series of preventive and therapeutic biologics with a potential for improved Rabies, Coronavirus, Hepatitis B, Influenza, and Shingles vaccines. YS Biopharma operates in China, the United States, Singapore and the Philippines, and is led by a management team that combines rich local expertise and global experience in the bio-pharmaceutical industry. For more information, please visit investor.ysbiopharm.com.

Investor Relations Contact

Robin Yang
Partner, ICR, LLC
Tel: +1 (212) 537-4035
Email: YSBiopharma.IR@icrinc.com

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SOURCE YS Biopharma Co., Ltd.

What resolutions were passed at YS Biopharma's extraordinary general meeting?

The resolutions passed included reaffirming directors, conducting an investigation, enhancing corporate governance, and removing a former chairperson.

How many ordinary shares were issued and outstanding at the time of the meeting?

As of the record date, YS Biopharma had 188,327,959 ordinary shares issued and outstanding.

What were the voting results for the resolutions at the meeting?

99,472,858 votes were in favor, 6,508,744 votes were against, and 1,129,039 votes abstained for the resolutions at the meeting.