Funds tied to Aurinia Pharmaceuticals (AUPH) add shares, sell put options
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Aurinia Pharmaceuticals Inc. insider entities associated with Chief Executive Officer Kevin Tang reported significant open-market buying of common shares and new derivative positions. Funds managed through Tang Capital partnerships bought a net 814,606 common shares in late May and early June at prices around $15 per share, bringing their indirect holdings to 13,044,106 shares.
In a separate move, Tang-affiliated funds sold 10,000 short put options, creating a potential obligation to acquire up to 1,000,000 additional common shares at $15 per share if exercised by January 15, 2027. Together, these transactions increase the funds’ equity exposure to Aurinia while adding conditional future buying commitments.
Positive
- None.
Negative
- None.
Insights
CEO-linked funds increased Aurinia exposure via share purchases and short puts.
Funds associated with Kevin Tang acquired 814,606 Aurinia common shares through open-market purchases around $15 per share, raising their indirect position to 13,044,106 shares. These are discretionary buys, not option exercises or tax-driven moves.
The same funds entered into 10,000 short put options with a $15 strike, expiring on January 15, 2027. This structure adds downside obligation to buy up to 1,000,000 shares if assigned. Actual impact on share count and liquidity will depend on future market prices and whether counterparties exercise.
Insider Trade Summary
Net Buyer: 814,606 shares ($12,455,227)
Net Buy
6 txns
Insider
TANG KEVIN, TANG CAPITAL MANAGEMENT LLC
Role
Chief Executive Officer | null
Bought
814,606 shs ($12.46M)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Other | Short Put Options (potential obligation to buy) | 10,000 | $1.65 | $17K |
| Purchase | Common Shares | 206,005 | $15.28 | $3.15M |
| Purchase | Common Shares | 343,521 | $15.28 | $5.25M |
| Purchase | Common Shares | 99 | $15.34 | $2K |
| Purchase | Common Shares | 2,299 | $15.35 | $35K |
| Purchase | Common Shares | 262,682 | $15.31 | $4.02M |
Holdings After Transaction:
Short Put Options (potential obligation to buy) — 10,000 shares (Indirect, By LP);
Common Shares — 13,044,106 shares (Indirect, By LP)
Footnotes (1)
- The prices reported are weighted-average prices. These shares were purchased in multiple transactions at prices ranging from $15.33 to $15.38. The Reporting Persons undertake to provide the Issuer, any security holder of the Issuer or the SEC staff, upon request, all information regarding the number of shares purchased at each price within the ranges set forth in Footnotes 1 and 3 through 6. Tang Capital Partners, LP ("TCP") beneficially owns 7,205,442 shares, Tang Capital Partners International, LP ("TCPI") beneficially owns 5,239,039 shares, Tang Capital Partners III, Inc. ("TCP III") beneficially owns 324,814 shares, and Tang Capital Partners IV, Inc. ("TCP IV") beneficially owns 274,811 shares. Kevin Tang is the sole manager of Tang Capital Management, LLC, which is the general partner of TCP and TCPI. Kevin Tang is the sole director and Chief Executive Officer of TCP III and TCP IV, which are indirectly wholly owned by TCP. Mr. Tang has a pecuniary interest in the shares beneficially held by TCP, TCPI, TCP III and TCP IV (collectively, the "Funds"). These shares were purchased in multiple transactions ranging from $15.05 to $15.37. These shares were purchased in multiple transactions ranging from $14.97 to $15.50. These shares were purchased at $15.34. These shares were purchased in multiple transactions ranging from $15.00 to $15.40. Each put option is exercisable only at the option of the counterparty through the expiration date of the put option. Securities are beneficially held by TCP III and TCP IV. The Funds sold 10,000 put options on June 2, 2026. Pursuant to the put option contracts, the Funds have the potential obligation to acquire 1,000,000 common shares of the Issuer at $15 expiring on January 15, 2027.
Key Figures
Net common shares purchased: 814,606 shares
Purchase price range: $14.97–$15.50 per share
Holdings after transactions: 13,044,106 shares
+4 more
7 metrics
Net common shares purchased
814,606 shares
Open-market purchases in late May and early June 2026
Purchase price range
$14.97–$15.50 per share
Multiple transactions as described in footnotes
Holdings after transactions
13,044,106 shares
Indirect common share holdings following latest purchase
Short put options sold
10,000 contracts
Short put options on Aurinia common shares
Put option strike price
$15.00 per share
Conversion/exercise price for underlying common shares
Potential obligation shares
1,000,000 shares
Maximum common shares deliverable under short put contracts
Put option expiration
January 15, 2027
Expiration date of short put options
Key Terms
open-market purchase, Short Put Options (potential obligation to buy), beneficially owns, pecuniary interest, +2 more
6 terms
open-market purchase financial
"transaction_action: open-market purchase"
An open-market purchase is when an investor or a company buys shares on a public stock exchange at the going market price, rather than through a private deal. It matters to investors because these purchases change how many shares are available, can push the stock price up or signal confidence from large buyers, and often affect per-share metrics like earnings—think of it like someone buying lots of apples off a grocery shelf, reducing supply and potentially raising the price.
Short Put Options (potential obligation to buy) financial
"security_title: Short Put Options (potential obligation to buy)"
beneficially owns financial
"Tang Capital Partners, LP ("TCP") beneficially owns 7,205,442 shares"
Beneficially owns means a person or entity enjoys the economic benefits and control of a security even if the legal title or registration is held in another name. Think of it like having the keys and profits from a car that is registered to a friend: you use it, benefit from it, and make decisions about it even though the official paperwork lists someone else. For investors, this matters because it reveals who truly controls shares, affects voting power, potential conflicts of interest, and regulatory disclosure obligations.
pecuniary interest financial
"Mr. Tang has a pecuniary interest in the shares beneficially held"
put option contracts financial
"Pursuant to the put option contracts, the Funds have the potential obligation"
weighted-average prices financial
"The prices reported are weighted-average prices. These shares were purchased"
FAQ
What derivative position did Aurinia (AUPH) insider entities enter with short puts?
The funds sold 10,000 short put options on Aurinia shares. Under these contracts, they may be required to buy up to 1,000,000 common shares at $15 per share if exercised by the options’ January 15, 2027 expiration date.
Is the Aurinia (AUPH) Form 4 transaction an open-market purchase or option exercise?
The reported common share acquisitions are open-market purchases. The filing uses transaction code P and describes them as purchases in the open market or private transactions, rather than option exercises or compensation-related grants.