Sinovac Biotech Ltd. raised $86.7 million gross proceeds through a private placement.
Two private investors, Vivo Capital LLC and Advantech Capital, each bought 5.9 million common shares at $7.35 apiece, for a total of about 16.6% of Sinovac's outstanding common shares after the share issuance.
As part of the transaction, Vivo and Advantech appointed Shan Fu to Sinovac's board. Fu has been a managing partner in Vivo Capital since 2013.
The Beijing-based company will use the funds generated from the private placement to initiate the plans on its new production and research facilities for the development and commercialization of its Sabin-strain inactivated polio vaccine-based combination vaccine and other new vaccine projects.
In other news, Sinovac said it terminated its going-private deal with Sinovac (Cayman) Ltd. and Sinovac Amalgamation Sub Ltd. The company's decision was based on the recommendation of an independent special committee of directors established to review the acquisition.
Houlihan Lokey served as financial adviser, with Latham & Watkins LLP as legal adviser, in the private placement.