Aurinia Provides Update on Proxy Statement

Rhea-AI Summary

Aurinia Pharmaceuticals (NASDAQ: AUPH) has filed a supplement to its Proxy Statement dated June 3, 2024. The supplement aims to reduce the proposed increase in shares reserved under the Equity Incentive Plan from 11,375,000 to 8,500,000. The revised total increase of 8,500,000 Plan Shares now represents 22.7% of total shares outstanding as of April 30, 2024. The supplement amends the Proxy Statement to decrease the number of Plan Shares from 35,190,115 to 32,315,115. Shareholders are encouraged to read the supplement alongside the Proxy Statement. The document is available on Aurinia's website and on EDGAR and SEDAR+.

Positive

• Reduction in proposed Plan Shares from 11,375,000 to 8,500,000 minimizes potential dilution.
• Total shares reserved now represent 22.7% of total shares outstanding, a more moderate increase.
• Clear communication to shareholders ahead of the Annual Meeting, demonstrating transparency.

Negative

• The proposed increase of 8,500,000 Plan Shares still represents a significant percentage of total shares outstanding.
• Potential dilution for existing shareholders, albeit decreased, remains a concern.
• Change in the proxy statement might indicate management's reconsideration of initial plans, possibly signaling internal disagreements or external pressures.

ROCKVILLE, Md. & EDMONTON, Alberta--(BUSINESS WIRE)-- Aurinia Pharmaceuticals Inc. (NASDAQ: AUPH) (Aurinia or the Company) filed a supplement (the “Supplement”) to the Company’s Management Information and Proxy Statement dated June 3, 2024 (the “Proxy Statement/Circular”) for its Annual General Meeting of Shareholders to be held on June 14, 2024 (the “Annual Meeting”).

The purpose of the Supplement is to reduce the proposed increase in the shares reserved for issuance under the Company’s Equity Incentive Plan in Proposal 4 from 11,375,000 Plan Shares (as defined in the Proxy Statement/Circular) to 8,500,000 Plan Shares. Accordingly, the Supplement revises and amends the Proxy Statement/Circular to decrease the number of Plan Shares requested to be reserved for use under the Company’s Equity Incentive Plan in Proposal 4 in the Proxy Statement/Circular from 35,190,115 to 32,315,115, representing a total increase of 8,500,000 Plan Shares, and representing, in aggregate, 22.7% of total shares outstanding as of April 30, 2024. This supplement should be read in conjunction with the Proxy Statement/Circular.

A copy of the Supplement is available on the Company’s website at https://www.auriniapharma.com/investors-and-media/news-events/2024-agm, and on the Company’s profiles on EDGAR at www.sec.gov/EDGAR and SEDAR+ at www.sedarplus.ca.

About Aurinia

Aurinia Pharmaceuticals is a fully integrated biopharmaceutical company focused on delivering therapies to people living with autoimmune diseases with high unmet medical needs. In January 2021, the Company introduced LUPKYNIS® (voclosporin), the first FDA-approved oral therapy dedicated to the treatment of adult patients with active lupus nephritis. The Company’s head office is in Edmonton, Alberta, with its U.S. commercial office in Rockville, Maryland. The Company focuses its development efforts globally.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240603620342/en/

Media and Investor Inquiries:

Andrea Christopher

Corporate Communications and Investor Relations, Aurinia

achristopher@auriniapharma.com

ir@auriniapharma.com

Source: Aurinia Pharmaceuticals Inc.

FAQ

What is the date of the Annual General Meeting for Aurinia Pharmaceuticals?

The Annual General Meeting is scheduled for June 14, 2024.

What is the proposed increase in Plan Shares for Aurinia's Equity Incentive Plan?

The proposed increase has been reduced from 11,375,000 Plan Shares to 8,500,000.

What percentage of total shares outstanding do the new Plan Shares represent?

The new Plan Shares represent 22.7% of total shares outstanding as of April 30, 2024.

Where can I find the Supplement to Aurinia's Proxy Statement?

The Supplement is available on Aurinia's website, EDGAR, and SEDAR+.

What is the new total number of Plan Shares under Aurinia's Equity Incentive Plan after the amendment?

The new total number of Plan Shares is 32,315,115.