- Deep Track Capital, holding 14.34% of Dynavax Technologies (DVAX, Financial) shares, has their recent settlement proposal rejected by the DVAX Board.
- The proposal included appointing Deep Track nominees Brett Erkman and Donald Santel to the Board and removing two long-tenured directors.
- Deep Track is committed to pursuing board changes at the 2025 Annual Meeting despite the board's rejection.
Deep Track Capital, a major shareholder with a 14.34% stake in Dynavax Technologies (DVAX), recently expressed disappointment after the DVAX Board of Directors rejected their settlement proposal. This proposal sought to integrate two Deep Track nominees, Brett Erkman and Donald Santel, into the board while suggesting the removal of two long-standing directors and a rebalancing of board classes.
The investment firm views the board's refusal to negotiate as a sign of entrenchment, underlining the necessity for change to align with stakeholder interests. As the second-largest shareholder, Deep Track aims to eliminate the current focus on Hepatitis B eventually and is prepared to continue advocating for board reforms at the 2025 Annual Meeting, where they have already nominated four candidates.
Deep Track maintains that their intervention is motivated by long-term investment goals rather than short-term gains. The firm's call for change is bolstered by supportive responses from fellow investors, emphasizing the need for critical independence and shareholder representation on the board. As the proxy contest unfolds, the outcome may significantly impact Dynavax's future strategic directions and value creation.
