Prime Success Issues Statement on New York State Court Decision Confirming Our Rights as Sinovac Shareholders “ Including Right to Vote at Upcoming Special Meeting

Prime Success L.P., an 8% shareholder of Sinovac Biotech, issued a statement regarding recent court decisions related to a dispute with the 1Globe Activist Board. A New York court upheld Prime Success's right to vote its shares, and an Antiguan court denied the 1Globe Activist Board's attempt to invalidate shares legally acquired by Prime Success and Vivo via an $86 million PIPE investment. Prime Success accuses the 1Globe Activist Board of distorting reality and misleading shareholders, particularly regarding dividend payments and the company's history, and urges shareholders to vote for the SAIF Partners' nominees to end the infighting and resume NASDAQ trading.

Analysis

A significant corporate governance battle is intensifying at Sinovac Biotech Ltd. (SVA), with 8% shareholder Prime Success L.P. securing two favorable, albeit preliminary, court rulings against the incumbent "1Globe Activist Board." A New York court upheld Prime Success's right to vote its shares, and an Antiguan court rejected the board's attempt to invalidate shares originating from an $86 million PIPE investment. According to Prime Success, these legal victories reinforce its position ahead of a crucial special meeting. The shareholder is leveraging these developments to campaign for its preferred board slate, proposed by SAIF Partners, arguing the nominees are better positioned to resolve critical issues, including the distribution of a special cash dividend and lifting the long-standing NASDAQ trading halt. Prime Success accuses the current board of distorting facts and intentionally delaying progress, pointing to the board's failure to disclose the unfavorable Antiguan ruling as evidence of a self-serving agenda. The core of the dispute is a fight for control, with the outcome poised to determine the company's strategic direction, governance, and ability to finally resume public trading.

Key Decisions for Investors

• Investors should closely monitor the ongoing proxy contest, as the outcome of the special meeting vote on the SAIF Partners' director slate will be a pivotal catalyst for the company's future governance and strategy.
• The primary value-unlocking event remains the resumption of NASDAQ trading; therefore, shareholders must critically assess which competing board faction presents a more credible and actionable plan to resolve the halt and appoint a new auditor.
• Despite recent favorable court decisions for Prime Success, significant legal risk persists with the core dispute heading to arbitration in Hong Kong, warranting caution regarding potential for further litigation and associated costs.
• Given the conflicting narratives, it is crucial to seek information from the 1Globe Activist Board to gain a balanced view on the dividend delays and the contested PIPE investment before making a voting decision.