(RTTNews) – China-based SINOVAC Biotech Ltd. (SVA) Monday introduced that its Board of Administrators has alerted shareholders to a brand new lawsuit by Advantech/Prime Success, which threatens to forestall fee of $55 particular dividend to all legitimate shareholders.
The corporate famous that Advantech/Prime Success on June 12 filed a Petition for Emergency Injunctive Aid in opposition to SINOVAC, et al., naming as aid events Cede & Co., The Depository Belief Co., and Equiniti, the dividend paying agent retained by the SINOVAC Board.
The corporate expects to file its Opposition Temporary in opposition to the Petition at this time at 5:00 p.m. Atlantic Commonplace Time, adopted by a listening to on Wednesday, June 18.
Sinovac Biotech in April declared a particular money dividend of $55 per share, with fee scheduled on or about July 9.
The supplier of biopharmaceutical merchandise now famous that Vivo Capital’s counsel knowledgeable the paying agent that Vivo would problem the dividend and requested the paying agent to withdraw from facilitating the distribution of the $55 dividend declared by the SINOVAC Board.
The corporate mentioned, “We proceed to be shocked by the self-serving, pointless actions by Advantech and Vivo Capital, collectively often known as the “Dissenting Investor Group, in opposition to SINOVAC, threatening the rightful dividend fee to all legitimate SINOVAC frequent shareholders.”
Sinovac Biotech added that these incomprehensible actions are unacceptable to its Board as a result of the Dissenting Investor Group has already pocketed greater than $1.1 billion in dividends from SINOVAC’s working subsidiary, whereas all SINOVAC’s legitimate shareholders obtained nothing.
The corporate additionally famous that an quantity equal to the combination amount of money that will be payable underneath the $55 per frequent share particular dividend in respect of the 2018 PIPE shares has been put aside by its Board in an escrow account managed by an impartial third occasion pending last decision of the authorized proceedings, which the Dissenting Investor Group initiated.
With this, there isn’t any danger in any respect that the Dissenting Investor Group’s allocations of the dividend won’t be paid if the courts finally resolve of their favor relating to the PIPE shares, the agency added.
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