Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) initiated an exploration of strategic alternatives, including a potential sale, merger, or other strategic transaction.
Aurinia has retained JP Morgan as its financial advisor to assist in the review process.
Additionally, Aurinia’s Board of Directors has accepted the resignations of George Milne (Chairman) and Joseph Hagan (Compensation Chair), who received less than majority support during the May 17th annual general meeting.
Aurinia has retained Korn Ferry, a global organizational talent firm, to assist in the search for two new directors.
In April, MKT Capital Ltd, a shareholder with a 4.2% stake in Aurinia, issued a letter to Aurinia shareholders with plans to withhold support for three directors at the 2023 annual meeting.
In the letter, the shareholder concluded that the company should commence a strategic review process immediately to explore a sale of the entire business., which could attract a well-capitalized strategic acquirer or private equity buyer and yield up to $28 per share.
MKT Capital also noted that the Board diluted shareholders and awarded outsized compensation packages to management in the face of value destruction – including to the CEO, who has been paid $26 million since 2019.
Price Action: AUPH shares are up 14.30% at $10.47 during the premarket session on the last check Friday.
