YS Biopharma Raises Concerns About Validity of Extraordinary General Meeting
YS Biopharma Co., Ltd. (NASDAQ: YS), a prominent biopharmaceutical company, is facing questions about the validity of an extraordinary general meeting (EGM) called by a group of shareholders. The company has asserted that the notice for the EGM, which aims to remove six out of seven directors, does not comply with the necessary procedural requirements.
In response to a notice served by shareholders, including Mr. Yi Zhang and several investment firms, YS Biopharma issued a statement on Monday. The company argues that the meeting has been improperly called for several reasons. Firstly, it claims that the notice served on February 8, 2024, fails to meet the seven calendar days’ notice required by the company’s articles of association. Additionally, the directors proposed for removal were not given the required ten-day notice.
Moreover, YS Biopharma has highlighted discrepancies in the record date share count. The notice incorrectly states the number of ordinary shares issued and outstanding as of February 8, 2024. The company had issued additional shares to an institutional investor on February 7, 2024, following a $40 million private placement transaction announced on February 9, 2024. As a result, the actual number of shares issued and outstanding at the record date was significantly higher than stated in the notice.
YS Biopharma specializes in the development of vaccines and therapeutic biologics for infectious diseases and cancer. It is renowned for its proprietary PIKA® immunomodulating technology platform and operates globally, with a presence in China, the United States, Singapore, and the Philippines.
Financial Metrics Raise Concerns for YS Biopharma
In light of the challenges surrounding YS Biopharma’s recent extraordinary general meeting (EGM), investors should carefully consider the company’s financial health and market performance. Real-time data reveals that YS Biopharma has a market capitalization of 38.99 million USD, indicating its size within the biopharmaceutical industry.
Although the company has an impressive gross profit margin of 80.05% over the last twelve months as of Q2 2024, it is facing significant financial headwinds. During the same period, revenue growth witnessed a decline of 11.42%, with an even more concerning quarterly revenue decline of 50.11% in Q2 2024.
These financial metrics are crucial for shareholders to take into account, particularly in the context of the EGM and the company’s future direction. It is worth noting that YS Biopharma carries a heavy debt burden, which could be further exacerbated by its difficulties in generating sufficient revenue to cover interest payments. Additionally, analysts do not expect the company to turn a profit this year, which may influence investor sentiment and the outcome of any proposed corporate governance changes at the EGM.
Analyst comment
Negative news. YS Biopharma is facing concerns about the validity of an extraordinary general meeting called by shareholders. The company argues that the meeting does not comply with procedural requirements. The financial health of the company is also a concern, with declining revenue and a heavy debt burden. Market sentiment may be impacted, and the outcome of corporate governance changes at the EGM may be influenced by these factors.
