David Gao Issues Statement Following Decision by the Grand Court of the Cayman Islands
December 17 2018 - 10:05AM
Business Wire
Mr. David (Xiaoying) Gao, a shareholder of China Biologic
Products Holdings, Inc. (“China Biologic” or the “Company”)
(NASDAQ: CBPO), today issued the following statement on the Grand
Court of the Cayman Islands’ recent decision regarding his lawsuit
against the Company:
“I am disappointed that my lawsuit was dismissed and will
evaluate all options as I continue my efforts to protect my and
other minority shareholders’ interests in the company.
“It is unfortunate that the legal process is hindered because of
a Cayman law technicality with regard to my standing to file such a
lawsuit before the court can hear the substance of the case
regarding the improper purpose of the Board’s actions. The Board’s
hastily arranged private placement to a small group of handpicked
investors, including Centurium Capital, Chairman David Li’s private
equity fund, improperly transferred voting power away from the
minority shareholders. With the assigned voting rights from the new
investors, the Board can block any decision or action it does not
support, which should be alarming given their poor track
record.
“The Board has taken a number of questionable actions, including
failing to engage on an US$118.00 all-cash proposal to acquire the
Company and instead moving forward with a value destructive private
placement that resulted in China Biologic’s stock falling to the
lowest at $60.08.
“I believe the minority shareholders have lost confidence in the
Board’s ability to act on behalf of their interests. While it is
quite clear that all shareholders would have been best served if
the Board had accepted the $118 offer just months ago, I am
particularly concerned that David Li may be capable of using his
concentrated voting power to take China Biologic private at a price
lower than what the Board claimed did not reflect the intrinsic
value of the company.
“The best interests of the Company, its customers and its
shareholders are at stake and I appreciate the continued support of
my fellow shareholders as I take all the necessary steps to ensure
China Biologic’s Board acts in a responsible manner.”
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