Prime Success Issues Statement on New York State Court Decision Confirming Our Rights as Sinovac Shareholders – Including Right to Vote at Upcoming Special Meeting
Corrects the Record Following Latest Attempt By the 1Globe Activist Board to Distort Reality in Transparent Attempt to Mislead Shareholders
Notes That on Friday Antiguan Judge Denied the 1Globe Activist Board's Attempt to Immediately Prevent Prime Success From Voting Sinovac Shares – Which the Board Failed to Disclose to Shareholders
Prime Success L.P., (together with its affiliates, "Prime Success" or "we"), a significant shareholder of Sinovac Biotech Ltd. (NASDAQ:SVA) ("Sinovac" or the "Company") with ownership of approximately 8% of the Company's outstanding shares, today issued a statement in response to the decision by the United States District Court for the Southern District of New York on Friday, June 20, 2025.
Prime Success stated:
"The New York court ruling confirms what we have consistently stated: Prime Success has been a major owner of registered, valid shares of Sinovac for seven years and it has undisputed rights as such – including the right to vote with other shareholders to boot 1Globe and OrbiMed out of power. We requested an injunction in self-defense in response to the litigation initiated by the 1Globe Activist Board to prevent us from voting our shares. The 1Globe Activist Board also threatened to resort to self-help measures to keep us from voting. The court's decision was based on the premises that the 1Globe Activist Board currently has no basis to deny our rights as shareholders and that the dispute is currently in arbitration in Hong Kong, and unless those change no injunctive relief is required. The court expects the 1Globe Activist Board to act lawfully and not deprive us of our shareholder rights, and for the Antiguan court to uphold the obligation to send appropriate matters to arbitration, as required by treaty obligations. Importantly, this is why the ruling was without prejudice – we have the right to go back to the New York court if at any point the 1Globe Activist Board refuses to recognize our clear legal status as voting shareholders.
Also on Friday in a separate hearing in Antigua, the court rejected the 1Globe Activist Board's attempt to invalidate the shares Prime Success and Vivo legally acquired from their PIPE investment – an $86 million equity investment made to support SINOVAC when it was in dire need of capital. There will now be a subsequent hearing at the end of June to decide the appropriate next step on this case – which we continue to believe is mandatory arbitration in the Hong Kong International Arbitration Centre ("HKIAC") under Hong Kong law. Tellingly, the 1Globe Activist Board declined to disclose this development to shareholders in its June 21 press release – likely because it was not favorable to them.
Shareholders should realize at this stage that the alarming public statements issued by the 1Globe Activist Board are self-serving distortions of reality. Their characterizations are inaccurate, and especially their claim that Prime Success tried "to interfere with the payment of the US$55.00 per common share special cash dividend declared by the current SINOVAC Board." Prime Success has been demanding the distribution of dividends and never tried to block it.
Importantly, Prime Success reminds shareholders of the following:
- We support the fair distribution of dividends as soon as possible to all SINOVAC shareholders – the delay in dividend payments resulted from actions taken by the 1Globe Activist Board. The fact is that the SAIF slate's highly qualified nominees are better-suited to continue paying dividends and achieve a resumption of trading as soon as possible.
- Without Prime Success and Vivo's PIPE investment, Sinovac's core success would not have been possible. Our investment was a critical turning point for Sinovac, allowing for the distribution of all COVID vaccine doses, providing crucial medical treatment and putting Sinovac on a path to significant long-term growth, and came at a time when other funding options were not available to the Company.
- The 1Globe Activist Board cannot be trusted to act in the best interests of Sinovac or its shareholders. Shareholders deserve a refreshed, forward-looking Board committed to sound governance, ending wasteful litigation, recruiting a new auditor, and getting Sinovac's NASDAQ trading halt lifted. To date, the 1Globe Activist Board has not communicated any concrete intention or documented any steps taken to resume share trading on NASDAQ as soon as possible.
Prime Success is directly aligned with shareholders and believes that the slate of directors proposed by SAIF Partners IV L.P., ("SAIF Partners") is essential for a renewed focus on durable value creation that will pave the way for Sinovac to move forward – ending the toxic pattern of infighting and litigation instigated by the 1Globe Activist Board.
Your vote at the Special Meeting can make this important change happen.
We urge all shareholders vote the GOLD proxy card in support of the SAIF nominees and choose the leadership that will best secure our Company's success in the years to come."
About Prime Success, L.P.
Prime Success is an investment vehicle established by Advantech Capital specifically to invest in Sinovac and Sinovac Life Sciences; Advantech Capital is a private equity fund established in 2016 with a focus on innovation-driven growth opportunities in China.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250621520435/en/
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