11:39 AM EDT, 09/11/2024 (MT Newswires) -- Dye & Durham ( DYNDF ) 's board is facing criticism from shareholder Engine Capital over the company's rising leverage and recent acquisitions, according to a letter published Wednesday.

Engine Capital, which owns approximately 7.1% of Dye & Durham ( DYNDF ), said transactions the software company made worth $69.3 million were against the board and management's previous commitment to reduce debt.

Engine Capital also noted that Dye & Durham's ( DYNDF ) pro-forma leverage is almost back to the same level as before the dilutive equity offering in February despite leadership's promises to drive leverage lower.

"We felt blindsided because for the last few months that we have interacted with Chair Colleen Moorehead, she has repeatedly assured us that 'the Board has no appetite for M&A' and that 'the board's priority is to reduce debt,'" Arnaud Ajdler, Engine Capital's managing partner, wrote in the letter.

Engine Capital called for "meaningful changes" to address the valuation gap in Dye & Durham's ( DYNDF ) shares, which continue "to trade at a significant discount to other technology companies or technology consolidators."

Engine Capital urged independent directors to set a date for a special meeting "as soon as practically possible so that shareholders can have their say."

Dye & Durham's ( DYNDF ) shares were last seen down $0.58 to $13.68 on the Toronto Stock Exchange.

Price: 13.68, Change: -0.58, Percent Change: -4.07