BEIJING–(BUSINESS WIRE)–Sinovac Biotech Ltd. (NASDAQ:SVA) (“Sinovac” or the “Company”), a
leading provider of biopharmaceutical products in China, today issued an
update on the Exchange of Rights for Common and Series B Preferred
Shares announced February 22, 2019.
On February 22, 2019, as announced by press
release, the Sinovac Board of Directors effectuated an Exchange of
Rights held by certain Sinovac’s shareholders for a combination of
approximately 27.8 million Common Shares and approximately 14.6 million
Series B Preferred Shares (the “Exchange Shares”), all of which the
company issued into a trust for the benefit of the holders of the valid
and outstanding Rights.
The Company now expects to hold the Exchange Shares in the Shareholder
2019 Rights Exchange Trust in the name of Wilmington Trust, National
Association (the “Trustee”) until the Court of Chancery of the State of
Delaware has determined whether the conduct of 1Globe Capital, LLC,
Chiangjia Li, OrbiMed Advisors LLC and those additional shareholders who
voted with the foregoing at the annual general meeting held in February
2018 (the “Collaborating Shareholders”) triggered the Rights Agreement.
The Exchange Shares remain issued and outstanding and holders of valid
Rights may continue to submit certifications to verify that they are
eligible for the Exchange.
On March 6, 2019, the Delaware Chancery Court entered a Status Quo
order providing that Sinovac not distribute any of the Exchange Shares
to rights holders until the final disposition of the pending Delaware
litigation or further order of the Court. The trial in the Delaware
Chancery Court is expected to be held within 60 to 90 days.
The Company will work with the Nasdaq Stock Market LLC to resume trading
of the Common Shares as expeditiously as possible, but is unable to
currently estimate when trading will resume.
Sinovac Biotech Ltd. is a China-based biopharmaceutical Company that
focuses on the research, development, manufacturing and
commercialization of vaccines that protect against human infectious
diseases. Sinovac’s product portfolio includes vaccines against
enterovirus71, or EV71, hepatitis A and B, seasonal influenza, H5N1
pandemic influenza (avian flu), H1N1 influenza (swine flu), and mumps.
Healive, the hepatitis A vaccine manufactured by the Company has passed
the assessment under WHO Prequalification procedures in 2017. The EV71
vaccine, an innovative vaccine developed by Sinovac against hand foot
and mouth disease caused by EV71, was commercialized in China in 2016.
In 2009, Sinovac was the first company worldwide to receive approval for
its H1N1 influenza vaccine, which it has supplied to the Chinese
Government’s vaccination campaign and stockpiling program. The Company
is also the only supplier of the H5N1 pandemic influenza vaccine to the
government stockpiling program. The Company is developing a number of
new products including a Sabin-strain inactivated polio vaccine,
pneumococcal polysaccharides vaccine, pneumococcal conjugate vaccine and
varicella vaccine. Sinovac primarily sells its vaccines in China, while
also exploring growth opportunities in international markets. The
Company has exported select vaccines to over 10 countries in Asia and
South America. For more information please see the Company’s website at www.sinovacbio.com.
Safe Harbor Statement
This press release contains “forward-looking statements” within the
meaning of the United States federal securities laws. Such statements
involve known and unknown risks, uncertainties and other factors that
may cause our actual results, levels of activity, performance or
achievements to differ materially from any future results, levels of
activity, performance or achievements expressed or implied by these
forward-looking statements. Factors that might cause such a difference
include our inability to compete successfully in the competitive and
rapidly changing marketplace in which we operate, failure to retain key
employees, cancellation or delay of projects, disruptions to our
operations, the results of any pending litigation, potential litigation
relating to our shareholder rights plan, any potential halt in trading
of the Company’s securities, and adverse general economic conditions in
China, the United States and elsewhere. These risks and other factors
include those listed under “Risk Factors” and elsewhere in our Annual
Report on Form 20-F as filed with the Securities and Exchange
Commission. In some cases, you can identify forward-looking statements
by terminology such as “may,” “will,” “should,” “expects,” “intends,”
“plans,” “anticipates,” “believes,” “estimates,” “predicts,”
“potential,” “continue,” or the negative of these terms or other
comparable terminology. Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we cannot
guarantee future results, levels of activity, performance or
achievements. The Company assumes no obligation to update the
forward-looking information contained in this release.
Sinovac Biotech Ltd.
Sydney Isaacs, +1-713-999-5104
MacKenzie Partners, Inc.
Bill Zima, +1-646-308-1707