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Vivo Capital Issues Letter to Sinovac Biotech Shareholders Addressing the Company’s False and Misleading Claims - Seite 2
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.
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