2023-04-24 12:18:08 ET
MKT Capital, which owns 4.2% of the outstanding shares of Aurinia Pharmaceuticals ( NASDAQ: AUPH ), is calling on the company to put itself up for sale.
In a Monday letter to shareholders, MKT writes that a "reconstituted board" should "commence a strategic review process immediately to explore a sale of the entire business."
The investment management firm said doing so could yield up to $28 per share, equivalent to a 192% premium based on the stock's recent price.
MKT noted it is very disappointed in decisions made by the current board, especially with respect to executive compensation. The firm cited a 2020 decision by the compensation committee that CEO Peter Greenleaf to double his pay package compared to the prior year to nearly $10.7M despite the poor performance of Aurinia's ( AUPH ) stock.
MKT said it will withhold support for Greenleaf, board chairman George Milne, and compensation committee chairman Joseph Hagan. "In our view, these incumbents have perpetuated a culture of failure and self-enrichment at the expense of shareholders and must be held accountable."
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Aurinia Pharma shareholder says company should put itself up for sale