SINOVAC Announces New Board Pursuant to Privy Council Judgment and Order
Sinovac Biotech (NASDAQ:SVA) has received a formal court order from the Privy Council on February 8, 2025, following a judgment that validates the 2018 Annual General Meeting board election and invalidates the company's Rights Agreement (poison pill agreement). As a result, approximately 27.7 million common shares and 14.6 million Convertible Series B Preferred Shares held by the 2019 Rights Exchange Trust will be cancelled.
The new Board of Directors includes Dr. Chiang Li (Chairman), Mr. Yuk Lam Lo, Dr. David Guowei Wang, Mr. Pengfei Li, and Mr. Jianzeng Cao, with three members designated as independent directors. The executive management remains unchanged. The board is actively working with Nasdaq to address listing requirements and restore trading, which has been halted for six years due to the invalid poison pill agreement.
Sinovac Biotech (NASDAQ:SVA) ha ricevuto un'ordinanza formale dal Consiglio Privato l'8 febbraio 2025, a seguito di una sentenza che convalida l'elezione del consiglio dell'Assemblea Generale Annuale del 2018 e invalida l'Accordo sui Diritti dell'azienda (accordo pillola avvelenata). Di conseguenza, circa 27,7 milioni di azioni ordinarie e 14,6 milioni di azioni privilegiate convertibili di Serie B detenute dal 2019 Rights Exchange Trust verranno annullate.
Il nuovo Consiglio di Amministrazione include il Dr. Chiang Li (Presidente), il Sig. Yuk Lam Lo, il Dr. David Guowei Wang, il Sig. Pengfei Li e il Sig. Jianzeng Cao, con tre membri designati come amministratori indipendenti. La gestione esecutiva rimane invariata. Il consiglio sta lavorando attivamente con Nasdaq per affrontare i requisiti di quotazione e ripristinare le negoziazioni, che sono state sospese per sei anni a causa dell'invalido accordo pillola avvelenata.
Sinovac Biotech (NASDAQ:SVA) ha recibido una orden judicial formal del Consejo Privado el 8 de febrero de 2025, tras un fallo que valida la elección de la junta de la Asamblea General Anual de 2018 e invalida el Acuerdo de Derechos de la empresa (acuerdo de pastilla envenenada). Como resultado, aproximadamente 27.7 millones de acciones comunes y 14.6 millones de Acciones Preferentes Convertibles de la Serie B, mantenidas por el 2019 Rights Exchange Trust, serán canceladas.
El nuevo Consejo de Administración incluye al Dr. Chiang Li (Presidente), al Sr. Yuk Lam Lo, al Dr. David Guowei Wang, al Sr. Pengfei Li y al Sr. Jianzeng Cao, con tres miembros designados como directores independientes. La gestión ejecutiva permanece sin cambios. El consejo está trabajando activamente con Nasdaq para abordar los requisitos de cotización y restaurar el comercio, que ha estado detenido durante seis años debido al inválido acuerdo de pastilla envenenada.
시노백 생명공학 (NASDAQ:SVA)는 2025년 2월 8일 특권위원회로부터 공식 법원 명령을 받았으며, 이는 2018년 연례 총회 이사회 선거를 유효하다고 판단하고 회사의 권리 계약(독소 조항 계약)을 무효화하는 판결에 따른 것입니다. 그 결과, 2019 권리 교환 신탁이 보유한 약 2,770만 주의 보통주와 1,460만 주의 전환 가능한 B 시리즈 우선주가 취소됩니다.
새로운 이사회는 Dr. Chiang Li(회장), Mr. Yuk Lam Lo, Dr. David Guowei Wang, Mr. Pengfei Li, Mr. Jianzeng Cao로 구성되며, 이 중 세 명은 독립 이사로 지정되었습니다. 경영진은 변경되지 않습니다. 이사회는 나스닥과 적극적으로 협력하여 상장 요건을 해결하고 거래를 복원하기 위해 노력하고 있으며, 이는 무효화된 독소 조항 계약으로 인해 6년 동안 중단되었습니다.
Sinovac Biotech (NASDAQ:SVA) a reçu une ordonnance judiciaire formelle du Conseil Privé le 8 février 2025, suite à un jugement qui valide l'élection du conseil d'administration de l'Assemblée Générale Annuelle de 2018 et invalide l'Accord de Droits de l'entreprise (accord de pilule empoisonnée). En conséquence, environ 27,7 millions d'actions ordinaires et 14,6 millions d'actions privilégiées convertibles de série B détenues par le 2019 Rights Exchange Trust seront annulées.
Le nouveau Conseil d'Administration comprend le Dr. Chiang Li (Président), M. Yuk Lam Lo, le Dr. David Guowei Wang, M. Pengfei Li et M. Jianzeng Cao, avec trois membres désignés comme administrateurs indépendants. La direction exécutive reste inchangée. Le conseil travaille activement avec Nasdaq pour répondre aux exigences de cotation et restaurer le commerce, qui a été suspendu pendant six ans en raison de l'accord de pilule empoisonnée invalide.
Sinovac Biotech (NASDAQ:SVA) hat am 8. Februar 2025 eine formelle gerichtliche Anordnung vom Privy Council erhalten, nach einem Urteil, das die Wahl des Vorstands der Jahreshauptversammlung 2018 validiert und die Rechtevereinbarung des Unternehmens (Giftpillenvereinbarung) für ungültig erklärt. Infolgedessen werden etwa 27,7 Millionen Stammaktien und 14,6 Millionen wandelbare Vorzugsaktien der Serie B, die im Jahr 2019 im Rights Exchange Trust gehalten werden, annulliert.
Der neue Vorstand besteht aus Dr. Chiang Li (Vorsitzender), Mr. Yuk Lam Lo, Dr. David Guowei Wang, Mr. Pengfei Li und Mr. Jianzeng Cao, wobei drei Mitglieder als unabhängige Direktoren benannt sind. Das Management bleibt unverändert. Der Vorstand arbeitet aktiv mit Nasdaq zusammen, um die Zulassungsanforderungen zu klären und den Handel wiederherzustellen, der aufgrund der ungültigen Giftpillenvereinbarung seit sechs Jahren ausgesetzt ist.
- Resolution of long-standing board dispute through Privy Council ruling
- Establishment of new board with majority independent directors
- Progress toward potential trading resumption after 6-year halt
- Need to cancel significant number of shares (27.7M common + 14.6M preferred)
- Audit Committee currently incomplete, not meeting Nasdaq requirements
- 6-year trading suspension affecting shareholder liquidity
Insights
This Privy Council ruling represents a seismic shift in Sinovac's corporate governance structure, resolving a six-year dispute that has kept the stock frozen since 2019. The judgment invalidates the company's poison pill and effectively overturns the previous board's defensive maneuvers, restoring power to the shareholder-elected 2018 slate. The cancellation of 27,777,341 common shares and 14,630,813 Convertible Series B Preferred Shares will dramatically alter SINOVAC's capital structure and ownership distribution.
The resumption of trading represents the most immediate catalyst for shareholder value. With shares halted since 2019, current shareholders have been trapped in illiquid positions despite SINOVAC's continued operations and pandemic-era vaccine production. The board restructuring under Chairman Dr. Chiang Li introduces three independent directors, potentially improving governance practices that previously triggered this dispute.
While executive management remains unchanged – providing operational continuity – the new board faces significant challenges: establishing Nasdaq compliance, reconstructing accurate shareholder records, and addressing six years of governance disruption. The successful navigation of these issues will determine whether this represents a value-unlocking opportunity or further complications for shareholders.
As the Company's Rights Agreement is void, all the exchange shares issued pursuant to the Rights Agreement (the “Exchange Shares”), including 27,777,341 common shares and all 14,630,813 Convertible Series B Preferred Shares of SINOVAC, held by the 2019 Rights Exchange Trust, are void and will be cancelled.
The current members of the new SINOVAC Board of Directors (the “New Board”) are Dr. Chiang Li (Chairman), Mr. Yuk Lam Lo, Dr. David Guowei Wang, Mr. Pengfei Li and Mr. Jianzeng Cao. The New Board has determined that Dr. Chiang Li, Mr. Yuk Lam Lo, and Dr. David Guowei Wang, constituting three of the five directors, are independent directors. Mr. Lo and Dr. Wang are the members of the New Board’s Audit Committee. Dr. Li, Mr. Lo and Dr. Wang are the members of the New Board’s Compensation Committee and the Corporate Governance and Nominating Committee. The New Board will need to appoint a third member for the Audit Committee to meet the Nasdaq Rule 5605 requirement. The executive management of SINOVAC remains unchanged.
SINOVAC’s New Board is committed to acting in the best interests of the Company as well as maximizing the value for all shareholders. Under the leadership of the New Board, the Company is determined to maintain transparency and uphold high standards of corporate governance.
As a result of the invalid poison pill agreement implemented by the former directors, trading in SINOVAC’s shares has been halted over the past six years. The New Board is in communication with Nasdaq and is working diligently to respond to Nasdaq’s questions and requests so as to provide for continued listing of the Company’s shares. Moreover, the New Board has initiated the process to cancel invalid Exchange Shares and to determine the valid shares issued and outstanding in order to achieve trading resumption.
The Company will also provide a business update in due course.
About the Judgment from the Privy Council
Enclosed for your information is a link to the full text of the Judgment: https://jcpc.uk/uploads/jcpc_2022_0041_0062_judgment_d94de5cc2a.pdf
About SINOVAC
Sinovac Biotech Ltd. (SINOVAC) is a
SINOVAC’s product portfolio includes vaccines against COVID-19, enterovirus 71 (EV71) infected hand-foot-mouth disease (HFMD), hepatitis A, varicella, influenza, poliomyelitis, pneumococcal disease, etc.
The COVID-19 vaccine, CoronaVac®, has been approved for use in more than 60 countries and regions worldwide. The hepatitis A vaccine, Healive®, passed WHO prequalification requirements in 2017. The EV71 vaccine, Inlive®, is an innovative vaccine under "Category 1 Preventative Biological Products" and commercialized in
SINOVAC was the first company to be granted approval for its H1N1 influenza vaccine Panflu.1®, which has supplied the Chinese government's vaccination campaign and stockpiling program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine, Panflu®, to the Chinese government stockpiling program.
SINOVAC continually dedicates itself to new vaccine R&D, with more combination vaccine products in its pipeline, and constantly explores global market opportunities. SINOVAC plans to conduct more extensive and in-depth trade and cooperation with additional countries, and business and industry organizations.
For more information, please visit the Company’s website at www.sinovac.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250225390774/en/
Sinovac Biotech Ltd.
Helen Yang
Tel: +86-10-8279 9779
Email: ir@sinovac.com
Source: Sinovac Biotech Ltd.
FAQ
What is the impact of the Privy Council's ruling on SVA's share structure?
Why has SVA stock been halted from trading for six years?
Who are the new independent directors on SVA's board following the Privy Council order?
What steps is SVA taking to resume trading on Nasdaq?
