Aurinia Resolves Temporary Non-Compliance with Nasdaq’s Audit Committee Composition Rule
July 12 2017 - 8:15PM
Business Wire
Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH / TSX:AUP) (“Aurinia”
or the “Company”) today announced the receipt of a letter from The
NASDAQ Stock Market LLC, regarding the Company’s recent temporary
failure to comply with the Nasdaq’s audit committee composition
requirement under Rule 5605(c)(2)(A), which requires among other
things, that each member of a company’s audit committee meet the
criteria for independence set forth Rule 10A-3(b)(1) under the U.S.
Securities Exchange Act of 1934, as amended. On May 8, 2017, the
Board of Directors mistakenly appointed the Company’s Chief
Executive Officer, Dr. Richard Glickman, to the audit committee in
response to the resignation of a Board member from the Board of
Directors. Pursuant to Canadian securities laws, there is an
exemption from the independence requirements for the composition of
a company’s audit committee in response to a resignation of one of
the members of the audit committee. However, as Dr. Glickman is an
executive officer he does not meet the criteria for independence
set forth in Rule 10A-3(b)(1), and is not eligible to sit on the
audit committee under NASDAQ rules. As a result, for a period of 44
days the Company was not in compliance with NASDAQ Rule
5605(c)(2)(A).
On June 21, 2017, following the Company’s Annual General Meeting
of Shareholders and prior to being contacted by The NASDAQ Stock
Market LLC, the Board of Directors reconstituted the audit
committee, so that Dr. Glickman was no longer a member of the audit
committee and therefore the Company regained compliance with NASDAQ
Rule 5605(c)(2)(A). The Company has been advised by The NASDAQ
Stock Market LLC, that it considers this matter closed.
About AuriniaAurinia is a clinical stage
biopharmaceutical company focused on developing and commercializing
therapies to treat targeted patient populations that are suffering
from serious diseases with a high unmet medical need. The company
is currently developing voclosporin, an investigational drug, for
the treatment of LN. The company is headquartered in Victoria, BC
and focuses its development efforts globally.
www.auriniapharma.com
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Investor Contact:Aurinia Pharmaceuticals Inc.Celia
EconomidesVice President, Public
Affairsceconomides@auriniapharma.com