Seeks to Correct the Record and Provide Accurate Information to
SOUTH SAN FRANCISCO, Calif., Dec. 20 /PRNewswire-FirstCall/ -- VaxGen, Inc. (Pink Sheets: VXGN)
As you are aware, VaxGen and Raven biotechnologies announced on November 12, 2007 that their respective Boards of Directors had unanimously approved the merger of the two companies, subject to stockholder approval.
As you may also have seen, MPM BioEquities Advisors, a VaxGen
stockholder, sent a letter to me and VaxGen's Board on December 11, 2007.
The content of this letter was subsequently disclosed by MPM in a press
release on December 12th. We believe that this letter and press release
contain errors, misstatements and incorrect assumptions which MPM has used
to support its recommendation that VaxGen terminate the proposed merger,
place its assets into a holding company, and pursue the sale or
distribution of those assets; i.e., liquidation. The primary purpose of my
letter to you is to correct the record, and to ensure that all stockholders
have the necessary, accurate information in order to make an informed
decision regarding the proposed merger. I also want to take the opportunity
to comment on a number of issues that have arisen in my many conversations
with stockholders over the last month.
MPM's analysis appears to reflect errors of three kinds:
1. It relies on very aggressive, indeed unrealistic, valuations of the
Company's non-financial assets, especially in a liquidation scenario,
and ignores the extensive process the Company and its advisors have
already undertaken over this past year seeking to monetize these
2. It fails to take full account of VaxGen's liabilities a
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