Hedge fund Pura Vida urges peace at Cutera board, pushes for new CEO search

Cutera

11/04/2023 22:14

By Svea Herbst-Bayliss
       NEW YORK, April 11 (Reuters) - Investment firm Pura Vida
is wading into a boardroom battle at global aesthetics device
company Cutera Inc  CUTR.O  by warning warring directors on
Tuesday it may push ahead with steps to boost the company's
share price if they fail to settle their disagreements.
    The New York-based hedge fund, 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 to act, 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.
    Pura Vida is also calling on the company to extend the
deadline for nominating directors which was in early January.
    Cutera's share price has tumbled 58% in the last 52 weeks.
It jumped 12% on Tuesday though after details about the standoff
on the board became public.
    A representative for the company did not respond to a
request for comment.
    Activist investor J. Daniel Plants and fellow board member
and CEO David Mowry on Monday said the board has become
"factionalized" and that a group of board members have bungled
the company's succession planning after Mowry had said that he
wanted to leave.
    Plants' Voce Capital and Mowry together own 7% in Cutera.
    Mowry and Plants said in a press release that they are
pushing for the removal of five of the board's eight directors
and are calling for a special meeting.
    Cutera on Friday said the board established a special
committee of independent directors to review the request for a
special meeting and related matters.

 (Reporting by Svea Herbst-Bayliss; Editing by Lisa Shumaker)
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))