SinoVac to Submit Counterarguments in Response to Advantech/PrimeTech's Recent Legal Action
China's SINOVAC Biotech in Hot Water Over $55 Special Dividend
Hey there! Guess who's back in the spotlight? You got it – China's SINOVAC Biotech Ltd. (SVA). The renowned biopharmaceutical powerhouse has found itself in a heated legal battle – and honestly, who isn't these days?
On Monday, SINOVAC boldly shared that its Board of Directors gave shareholders a heads up regarding a lawsuit by Advantech/Prime Success. This lawsuit, if successful, could sabotage the payment of a $55 special dividend to all eligible shareholders.
But wait, there's more! Advantech/Prime Success dropped a bombshell on June 12, filing a Petition for Emergency Injunctive Relief against SINOVAC, the dividend paying agent (Equiniti), Cede & Co., and The Depository Trust Co. – talk about a complicated string of parties!
Luckily, SINOVAC took swift action. They expect to file their Opposition Brief against the Petition by today at 5:00 p.m. Eastern Time, with a hearing set for Wednesday, June 18. That's just a couple of days after the dividend payment date, which is scheduled on or about July 9.
Now, you might wonder why this lawsuit is such a big deal. SINOVAC declared a special cash dividend of $55 per share in April, and it seems like not everyone's happy about it. Advantech/Prime Success isn't thrilled, and they've made their discontent clear by attempting to block the dividend payment.
But that's not all drama-wise. Vivo Capital, another shareholder group, also joined the fray by asking the paying agent to withdraw from distributing the $55 dividend. The whole situation is like a reality TV show, but the stakes are much higher than cash prizes.
In the middle of all this, SINOVAC's Board of Directors is keeping calm and saying loud and clear: "We're shocked by Advantech and Vivo Capital's self-serving actions!" They argue that the Dissenting Investor Group has already benefited massively from the company, while all other shareholders have received nothing.
To add another layer of intrigue, an escrow account has been set up to ensure that the Dissenting Investor Group's allocations will be paid if the courts rule in their favor regarding the 2018 PIPE shares.
The special meeting is scheduled for July 8, 2025, and Prime Success is urging shareholders to support a new board slate. It seems like change is in the air, whether SINOVAC is ready for it or not.
As always, if you have any comments or feedback, reach out to us at editorial@our website. Stay tuned for updates on this unfolding saga!
SINOVAC Biotech's legal battle over the $55 special dividend has raised concerns in the finance sector, as the outcome could significantly affect the business operations and shareholder value of the company.
The company's response to the lawsuit by Advantech/Prime Success, seeking to block the $55 special dividend payment, has CCED Securities, a well-known brokerage firm in China, analyzing the potential impact on SINOVAC's outstanding shares and future financial performance.
