Company: DVAX
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001029142-25-000071
Chunk: 453

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 453
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 of more than a specified percentage of our outstanding common stock without the prior approval of our Board of Directors. Although the rights should not interfere with any merger or other business combination approved by the Board of Directors since the rights issued may be amended to permit such acquisition, or may be redeemed by us, the rights plan may deter certain parties from pursuing strategic transactions involving us, including potential acquisitions. In addition, we remain subject to the provisions of the Delaware corporation law that, in general, prohibit any business combination with a beneficial owner of 15% or more of our common stock for three years unless the holder’s acquisition of our stock was approved in advance by our Board of Directors.

Our business could be negatively affected as a result of the pending proxy contest or other actions by activist stockholders.* 

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A group of our stockholders, including Deep Track Capital, LP, Deep Track Biotechnology Master Fund, Ltd. and David Kroin, has notified us of its intention to nominate four candidates for election to our Board of Directors at the 2025 Annual Meeting of Stockholders and engage in a proxy contest in support of their candidates and in opposition to the Board of Directors’ four nominees. A proxy contest or other actions by activist stockholders could have a material adverse effect on us for the following reasons:

•Such stockholders may attempt to effect changes in our governance and strategic direction or to acquire control over the Board of Directors or our company;

•While we welcome the opinions of all stockholders, responding to proxy contests and other actions by activist stockholders is likely to be costly and time-consuming, disrupt our operations, and potentially divert the attention of our Board of Directors, management team and other employees away from their regular duties and the pursuit of our business strategies and opportunities to enhance stockholder value;

•Perceived uncertainties as to our future direction as a result of potential changes to the composition of the Board of Directors may lead to the perception of a change in the strategic direction of the business, instability or lack of continuity, which may cause concern to our existing or potential partners, employees and stockholders; may be exploited by our competitors; may result in the loss of potential business opportunities or limit our ability to timely initiate or advance clinical trials; and may make it more difficult to attract and retain qualified personnel and partners;

•Claims made by activist stockholders in connection with a proxy contest or otherwise may harm our reputation, damage our relations with customers, employees, partners and other business relations such as suppliers, or otherwise impair our business; and