Aurinia Receives Exemptive Relief from Canadian Securities Regulators for Share Repurchase Program

Rhea-AI Summary

Aurinia Pharmaceuticals Inc. receives exemptive relief for a share repurchase program, allowing the purchase of up to 15% of its shares over 36 months. The Board approved a $150 million Current Program, showcasing confidence in the Company's growth prospects.

Insights

Financial Analyst

Share repurchase programs are a significant financial strategy that can influence a company's stock price and earnings per share (EPS). Aurinia Pharmaceuticals' decision to buy back up to 15 percent of its outstanding shares signals a strong cash position and potentially undervalued stock. Repurchases often suggest management's belief in the company's fundamentals and future performance, which can be a positive indicator for investors. This action may lead to a contraction of the equity base, potentially boosting EPS and the valuation multiples. However, the market's response will depend on the perception of the company's future growth prospects and the opportunity cost of not investing the capital elsewhere.

Market Research Analyst

From a market perspective, Aurinia Pharmaceuticals' repurchase program could be perceived as a move to enhance shareholder value, particularly in a period when the biopharmaceutical sector is facing challenges such as pricing pressures and regulatory hurdles. The repurchase plan could also be a strategic measure to counteract market volatility or a recent dip in share price. It's important to monitor the sector's performance and investor sentiment to understand the potential impact of this buyback on the company's market position. Additionally, the use of mechanisms like a 10b5-1 plan ensures pre-planned buying, which can mitigate accusations of insider trading and aligns with corporate governance best practices.

Legal Expert

The legal stipulations tied to the share repurchase, such as compliance with U.S. securities laws and the conditional nature of the exemptive relief granted by Canadian regulators, are vital to ensure the legitimacy of the program. The mention of Rule 10b5-1 and Rule 10b-18 indicates a structured approach to repurchasing shares, potentially reducing legal risks associated with market manipulation. Investors should be aware of the legal framework governing such transactions, as it can impact the execution and effectiveness of the repurchase program. The limitations and conditions imposed by regulators highlight the importance of transparency and adherence to legal requirements in corporate financial actions.

ROCKVILLE, Md. & EDMONTON, Alberta--(BUSINESS WIRE)-- Aurinia Pharmaceuticals Inc. (NASDAQ: AUPH) (Aurinia or the Company) today announced that Canadian securities regulators have granted exemptive relief for the Company’s share repurchase program, authorizing the Company to purchase up to 15 percent of its issued and outstanding shares in any 12-month period for up to 36 months, including under the Current Program.

Aurinia announced on February 15th that its Board of Directors (the “Board”) had approved a share repurchase program (the “Current Program”) of up to $150 million common shares of the Company (each, a “Common Share”), affirming its confidence in the Company’s growth prospects.

Purchases under the Current Program began on February 21, 2024. The expiry date of the Current Program is not currently known. This program is being and will continue to be implemented through the open market or privately negotiated purchases, including under a plan intended to benefit from the affirmative defense under Rule 10b5-1, Rule 10b-18 or an automatic securities purchase plan, an accelerated share repurchase program, or other mechanisms. The timing and amount of repurchase transactions are determined by the Company’s management based on its evaluation of market conditions, share price, legal requirements, including applicable blackout period restrictions, and other factors. The purchase price of any Common Shares will be determined in accordance with applicable U.S. securities laws.

The exemptive relief is conditional upon, among other things, purchases being made in compliance with applicable U.S. securities laws, the Common Shares not being listed in Canada and the limits described herein.

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, its U.S. commercial office is in Rockville, Maryland. The Company focuses its development efforts globally.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240229022919/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 ticker symbol for Aurinia Pharmaceuticals Inc.?

The ticker symbol for Aurinia Pharmaceuticals Inc. is AUPH.

What type of relief did Canadian securities regulators grant Aurinia Pharmaceuticals Inc.?

Canadian securities regulators granted Aurinia Pharmaceuticals Inc. exemptive relief for the Company’s share repurchase program.

How much of its shares is Aurinia Pharmaceuticals Inc. authorized to repurchase in any 12-month period?

Aurinia Pharmaceuticals Inc. is authorized to repurchase up to 15% of its issued and outstanding shares in any 12-month period.

What is the value of the Current Program approved by Aurinia Pharmaceuticals Inc.'s Board of Directors?

The Board of Directors approved a share repurchase program (the Current Program) of up to $150 million common shares of the Company.

When did the purchases under the Current Program begin?

Purchases under the Current Program began on February 21, 2024.