Altai Capital plans to seek two seats on OraSure’s board of directors, Reuters reported Tuesday, citing unidentified people.
OraSure (NASDAQ:OSUR) makes “point-of-care” diagnostic devices, such as InteliSwab for COVID-19 and OraQuick for HIV. They’re designed to be used by patients at home.
The stock has been a dog for years, and recently has become fodder for day traders. The price at 9:31 a.m. today was $3.36.
Altai already owns a stake in Bethlehem-based OraSure, and Reuters said the investor seeks two board seats. Reuters reported that the push for representation is not related to an earlier bid for the company from entrepreneur Ron Zwanziger.
OraSure has been floundering since the COVID pandemic, when it received government contracts and funding. Revenue has plummeted and the company has lost money.
On top of that, in March OraSure made in my humble opinion the ridiculous decision to spend as much as $40 million on stock in the company, trading cash for shares in an unprofitable company. The buyback announcement briefly pushed up the stock before it fell back again.
OraSure’s strength has been its cash position and lack of debt, and yet the company decided to throw money away.
Altai will seek to gain two board seats at OraSure’s next annual meeting, Reuters reported.
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