MKT Capital, which owns a 4.2% stake in Aurinia Pharmaceuticals (TSX:AUP) Inc, wrote in a letter to shareholders on Monday that the company should put itself up for sale, believing the biopharmaceutical firm could be worth up to $28 per share, equivalent to a 192% premium to its current stock price.
MKT, meanwhile, expressed its disappointment in decisions made by the current board, especially the compensation committee’s 2020 decision to reward CEO Peter Greenleaf with a $10.7 million pay package despite the poor performance of Aurinia's stock price.
MKT noted it will withhold its support for Greenleaf, board chairman George Milne, and compensation committee chairman Joseph Hagan, saying: “In our view, these incumbents have perpetuated a culture of failure and self-enrichment at the expense of shareholders and must be held accountable.”
Shares of Aurinia edged up 0.5% to $10.76 on Monday afternoon, but have surged more than 80% year to date.
Contact Sean at sean@proactiveinvestors.com