MKT Capital Pleased with Aurinia’s Commencement of a Strategic Review Process

Rhea-AI Summary

MKT Capital comments on Aurinia Pharmaceuticals' decision to initiate a review of strategic alternatives, including a potential value-maximizing sale, following MKT Capital's successful withhold campaign at the Annual General Meeting of Shareholders.

Positive

• Aurinia Pharmaceuticals has embraced MKT Capital's feedback and initiated a review of strategic alternatives, including a potential value-maximizing sale.
• MKT Capital believes that a critical mass of shareholders share their view that Aurinia should pursue a value-maximizing sale.
• MKT Capital is supportive of a reconstituted Board running a comprehensive process to maximize value for all shareholders.
• The Board has accepted the resignations of two influential directors following MKT Capital's successful withhold campaign.
• MKT Capital has identified a highly qualified director candidate to fill one of the vacancies and looks forward to engaging with the Board regarding the candidacy.

Negative

• None.

Believes Company is Ideally Positioned to Achieve a Value-Maximizing Sale

Encouraged that Company Embraced Feedback Delivered by MKT Capital and Other Shareholders

Urges Company to Replace Resigning Board Members with Shareholder-Designated Directors Equipped to Support a Comprehensive Review Process

CAYMAN ISLANDS--(BUSINESS WIRE)-- MKT Capital Ltd. (together with its affiliates, “MKT Capital” or “we”), the beneficial owner of approximately 4.2% of the outstanding common shares of Aurinia Pharmaceuticals Inc. (NASDAQ: AUPH) (“Aurinia” or the “Company”), today commented on the Company’s decision to initiate a review of strategic alternatives, including a potential value-maximizing sale, following MKT Capital’s successful withhold campaign at the Company’s 2023 Annual General Meeting of Shareholders.

Antoine Khalife, founder of MKT Capital, commented:

“We are pleased Aurinia has embraced our feedback and initiated a review of strategic alternatives. As previously noted, we believe a critical mass of shareholders share our view that Aurinia should pursue a value-maximizing sale, especially given the Company’s strong intrinsic value and seemingly robust interest from potential acquirers. We are supportive of a reconstituted Board running a comprehensive process, which considers the long-term potential of the LUPKYNIS drug, to maximize value for all shareholders.

Now that the Board has finally accepted the resignations of two influential directors following our successful withhold campaign, Aurinia should invite investor input on who will fill the vacancies. MKT Capital has identified a highly qualified director candidate to fill one of the vacancies and we look forward to privately engaging with the Board regarding the candidacy as part of the director search process. From our perspective, it is imperative there are shareholder-designated directors in the boardroom to help oversee a credible, comprehensive strategic review to maximize shareholder value.

After seeing the Board respect the will of shareholders, we are confident that meaningful value creation is on the horizon. As a long-term, significant investor in Aurinia, we plan to continue to monitor the situation closely. That said, given these recent positive developments, we intend to give the reconstituted Board an opportunity to deliver value for shareholders and will lend our support however possible.”

About MKT Capital Ltd.

Founded in 2012 by Antoine Khalife, MKT Capital Ltd. is an investment management firm which aims to deliver optimal risk-adjusted returns for its investors. For more information, contact Info@mkttacticalfund.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230706399704/en/

Longacre Square Partners

Charlotte Kiaie / Olivia McCann, 646-386-0091

ckiaie@longacresquare.com / omccann@longacresquare.com

Source: MKT Capital Ltd.

FAQ

What is the reason behind Aurinia Pharmaceuticals' decision to initiate a review of strategic alternatives?

Aurinia Pharmaceuticals initiated the review of strategic alternatives, including a potential value-maximizing sale, following MKT Capital's successful withhold campaign at the Annual General Meeting of Shareholders.

What is MKT Capital's stance on the situation?

MKT Capital is supportive of a reconstituted Board running a comprehensive process to maximize value for all shareholders. They have also identified a highly qualified director candidate to fill one of the vacancies and look forward to engaging with the Board regarding the candidacy.

What recent positive developments have occurred?

The Board has accepted the resignations of two influential directors following MKT Capital's successful withhold campaign.

What is the plan of MKT Capital?

As a long-term, significant investor in Aurinia, MKT Capital plans to continue to monitor the situation closely and give the reconstituted Board an opportunity to deliver value for shareholders.