The largest shareholder of Calgary-based pharmaceutical company SYNSORB Biotech (SYN-TSX) will attempt to install its own “alternative” board of directors at the upcoming shareholders meeting on May 7.
“SYNSORB has been run without an effective strategic plan to enhance the value of your shares,” says a letter sent to shareholders by Scout Capital, adding that despite their track record in managing the business, current directors and management have “nominated only themselves” for election.
Former SYNSORB president and CEO David Cox stepped down last month to pursue other opportunities and was replaced by CFO Bill Hogg, while board chair Richard Casey resigned and was replaced by board member Gerry Quinn.
Scout Capital said it intends to nominate Jim Silye, David Tonken and Tim Tycholis for election as directors.
SYNSORB has said it is nominating current directors Hogg, Quinn and Bruce Kenway, with the number of directors reduced to three.
The letter, signed by Tonken, says the key to the company’s future success is a new management team with expertise in revitalizing public companies.
SYNSORB laid off staff and terminated trials last year on its anti-diarrhea drug. The company kept its management team to search for “strategic alternatives."
Scout Capital acquires control of under-performing public companies, reorganizes them, and re-sells the business to new management teams as a clean public “shell.”
