New York-based activist hedge fund Pura Vida has entered a boardroom battle at global aesthetics device company Cutera Inc with plans to push ahead with “an orderly CEO succession process”, according to a report by Reuters.
Amid perceived factionalisation, Pura Vida, which owns a 7% stake in Cutera, said it wants the board to “move the company forward with an orderly CEO succession process” with the help of a prominent executive search firm.
During the search, Pura Vida wants the current CEO to remain at the helm.
If the board fails settle its disagreements, Pura Vida aims to push ahead with plans to boost the company’s share price. Specifically, Pura Vida’s managing member Efrem Kamen said on Tuesday his firm has “identified a world-class CEO and high-quality independent directors” who could help the company.
The hedge fund also wants Cutera – whose share price has plummeted 58% in the last year – to extend the deadline for nominating directors which was in early January.
Cutera said last week that its board established a special committee of independent directors to review the request for a special meeting and related matters. Cutera’s share price rose 14% on Tuesday after it regained compliance with Nasdaq’s continued listing standards and details about the standoff on the board became public.