12:03 PM EDT, 05/17/2024 (MT Newswires) -- (Updates with Arbutus comments in sixth and seventh paragraphs. Updates stock move in the last paragraph.)

Arbutus Biopharma ( ABUS ) shareholder Whitefort Capital Management issued an open letter to shareholders Friday urging the company to stop further share issuances and explore strategic alternatives for its hepatitis B portfolio.

Whitefort, which holds about 6.8% of the company's outstanding shares, said it was encouraged to learn that there is no need to further use the company's at-the-market program this year, but said the company should commit to stop any further share issuances.

Arbutus was also urged to engage a financial advisor by year-end to review its hepatitis B portfolio and explore alternatives, including potential license and collaboration agreements and other strategic partnerships, Whitefort said.

Whitefort said it has spoken with Arbutus Board Chairman Frank Torti and interim Chief Executive Michael McElhaugh ahead of the company's annual meeting on May 22.

"In our ongoing dialogue with the company, we have requested that the board act with urgency to terminate the company's at-the-market [ATM] program in order to avoid continued dilution and preserve the substantial value of the company's [lipid nanoparticle] patent infringement claims against Moderna (MRNA) and Pfizer (PFE)/BioNTech (BNTX)," Whitefort said.

An Arbutus spokesperson told MT Newswires that the company "seeks to maintain an active and engaged dialogue with all of its shareholders, including Whitefort."

"The perspectives of all Arbutus shareholders are an important input as we think about our strategy and the opportunities we have to enhance shareholder value," the Arbutus spokesperson added.

Arbutus shares were rising 3.1% in recent trading.

Price: 2.98, Change: +0.09, Percent Change: +3.11