Another major proxy battle is brewing in Vancouver. Biotech company QLT Inc. (TSX:QLT) has issued a letter to stock holders warning of an attempt by a Danish venture capital firm to gain control of the company's board of directors at today's annual general meeting.
In its letter, QLT's board of directors warn that NB Public Equity Komplementar ApS – Denmark (Nordic Biotech) is "proposing a dissident slate of directors for election" at the company's annual general shareholder meeting today. Nordic Biotech is a venture capital firm based in Denmark that holds a 15% stake in QLT, which trades on the TSX and Nasdaq exchanges.
"We learned [May 22] that a small group of institutional shareholders is seeking to acquire control of your company without prior notice to stockholders and without a plan to deliver future value," QLT's board of directors wrote in a letter to shareholders.
On May 22, Nordic Biotech filed notification with United States Securities & Exchange Commission that it will seek the election of up to six new nominees to QLT's board of directors.
"The dissident group has not communicated a plan for the company, its assets, or its employees. This minority group is seeking to acquire control of your company without notice, without a plan, and without paying you for control.
QLT has been recovering from a prolonged contraction. Starting in 2005, QLT, which specializes in treating eye diseases, had to lay off half its work force and sell off assets.
The company is back in growth mode, collecting royalties on drugs it developed – Visudyne (used to treat macular degeneration) and Eligard (a prostate cancer drug) – and has been in hiring mode.
QLT's board warns shareholders that a change on the company's board of directors could set the company back on its recovery.
"This action is highly disruptive and could impede the progress in all three of our current clinical development programs," the board warned.
QLT is the second Vancouver company to become the subject of a proxy tug-of-war recently.
Just last week, John Greenslade, founder and CEO of Baja Mining Corp. (TSX:BAJ), was forced to resign as CEO and as a member of the board of directors, following a proxy battle with major shareholder Mount Kellett, a New York-based investment firm.
A spokesperson for QLT could not be reached for comment. QLT's shares were trading at $7.23 per share on the TSX at close of markets Wednesday.
