Company: DVAX
Filing Date: 2025-04-21
Form Type: DEFC14A
Source: 0001193125-25-087127
Chunk: 10

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-04-21
Form: DEFC14A
Chunk 10
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 optimal use of excess cash. Despite our efforts over a period of months to engage constructively with the Board and management team regarding
our concerns and the opportunities that we believe are available to drive value, it became clear that the Board is more interested in entrenchment and pursuing its unfortunate acquisition strategy than acting in the best interests of all
Stockholders. Our discussions with non-executive members of the Board have largely been limited to the Chairman, Scott Myers, who we believe is the architect of, and is responsible for, the Company’s
current misguided strategy.

We believe that the Company’s “empire-building” strategy of seeking acquisitions that lack
strategic rationale instead of focusing on leveraging the potential of its major asset, Heplisav, is putting Stockholders’ investments at risk. While we have confidence in the Company’s management team, we are highly skeptical of the
strategy being set by the Board. In 2023, the Board tasked management with presenting an evaluation of at least three late stage/commercial opportunities. The Company’s subsequent focus on asset acquisitions and growing inorganically have
yielded no viable acquisition opportunities and have distracted management from growing Heplisav. Most recently, despite having significant available cash on its balance sheet, the Company inexplicably increased its debt obligations by refinancing
the majority of its outstanding convertible debt with expensive new convertible notes, rather than pay down its debt obligations using cash on hand. These questionable and unsophisticated strategies indicate the need for a refreshed Board with
independent perspectives and greater alignment with Stockholders.

The Board has also resorted to reactive board entrenchment moves,
including replacing directors with appointees who do nothing to address governance deficiencies and quickly adopting a Stockholder Rights Plan as soon as we disclosed the increase in our ownership stake in the Company to 13.6%. The Company has made
only perfunctory moves to appear shareholder-friendly, such as announcing a $200 million share buyback – something Deep Track Capital (and others) had long implored the Company to do, but which only occurred after Deep Track Capital
publicly surfaced – and declassifying a staggered board after our criticism, but only over the course of years, with its full effect not taking place until 2028.

Deep Track Capital does not typically take active, public roles at companies. However, as a long-term and significant investor of Dynavax, we
felt compelled to alert our fellow stockholders to the risk that the Company will squander its substantial and