SOUTH SAN FRANCISCO, Calif., March 28 /PRNewswire-FirstCall/ -- VaxGen,
Inc. (OTC Bulletin Board: VXGN), a biopharmaceutical company, announced
that the Company and Raven biotechnologies, inc. have mutually agreed to
terminate their merger agreement in light of stronger than anticipated
opposition to the proposed merger by VaxGen stockholders. In addition,
VaxGen's Board has withdrawn from stockholder consideration the proposed
2008 Equity Incentive Plan, which is unnecessary in the absence of the
merger. It has recently become apparent to both companies that despite
initial indications to the contrary, the proposed merger and related equity
plan proposals would be rejected by VaxGen stockholders.
(Logo: http://www.newscom.com/cgi-bin/prnh/19991112/VAXGENLOGO )
"We are obviously very disappointed that the proposed merger with Raven
was not approved by our stockholders," said James P. Panek, VaxGen
President and CEO. "Despite the strong support of some institutions, and
solid support by so many individual investors, it has become quite clear
that there is sufficient opposition, such that this merger will not be
approved."
VaxGen intends to open the Special Meeting of Stockholders scheduled
for Friday, March 28th, but will adjourn the meeting without taking any
action. The Board of Directors intends to immediately assess the Company's
strategic alternatives, including a possible liquidation of the Company.
About VaxGen
VaxGen is a biopharmaceutical company based in South San Francisco,
California. The company owns a state-of-the-art biopharmaceutical
manufacturing facility with a 1,000-liter bioreactor that can be used to
make cell culture or microbial biologic products. For more information,
please visit the company's web site at http://www.vaxgen.com.
Note: This press release contains "forward-looking statements" within
the meaning of the federal securities laws, including statements regarding
the holding of the Special Meeting of Stockholders and the Board of
Directors' plans to assess strategic alternatives. These statements are
subject to risks and uncertainties that could cause actual results and
events to differ materially from those anticipated. Additional information
concerning these and other risk factors is contained in VaxGen's Annual
Report on Form 10-K for the year ended December 31, 2007. Readers are
cautioned not to place undue reliance on these forward-looking statements
that speak only as of the date of this release. VaxGen undertakes no
obligation to update publicly any forward- looking statements to reflect
new information, events, or circumstances after the date of this release
except as required by law.
SOURCE VaxGen, Inc.
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Related links:
http://www.vaxgen.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/19991112/VAXGENLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Matthew Pfeffer of VaxGen, Inc.,
+1-650-624-2400
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