Acacia Research Corporation (“we”, "Acacia) (Nasdaq: ACTG) today provided an update on its investment in Immersion Corporation (Nasdaq: IMMR) ("Immersion") and its previous nomination of directors for election to the Board of Directors of Immersion (the "Board") .
“On August 1, 2019 we stated on Schedule 13D that we believed Immersion shares were trading at a discount to intrinsic value owing to corporate missteps and errors of strategy,” commented Al Tobia, President and Chief Investment Officer of Acacia Research Corporation. “We objected to the composition of the Immersion Board and their failure to hold management accountable for a profitable operating plan. We continued to monitor Immersion and, after seeing no progress, on December 26, 2019 we nominated a slate of highly qualified director candidates for election to the Board.”
Mr. Tobia continued, “We are now withdrawing our board nominees in light of VIEX Capital Advisors’ agreement with the company, and the resulting reconstitution of the Board and formation of a Strategic Committee. We expect the new Board to hold management accountable for a risk adjusted operating plan as well as thoroughly vet strategic paths forward, and will continue to monitor our investment in Immersion in light of those objectives.”
Clifford Press, Acacia’s Chief Executive Officer, stated, “We are gratified to have served as a catalyst for positive changes at Immersion. We have been encouraged by the recent cost reduction actions and we view the formation of the Strategic Committee of the Board as an integral step to realizing stockholder value. Shareholder engagement was a necessary catalyst for change at Immersion and we believe the steps the Board is now taking will serve the best interests of Immersion and its stockholders.”
About Acacia Research Corporation
Founded in 1993, Acacia Research Corporation (ACTG) invests in Intellectual Property Assets and partners with inventors and patent owners to realize the financial value in their patented inventions. Acacia bridges the gap between invention and application, facilitating efficiency and delivering monetary rewards to the patent owner.
Information about Acacia Research Corporation and its subsidiaries is available at www.acaciaresearch.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This news release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including the ability to successfully implement our strategic plan, the ability to successfully build out a new leadership team within a certain timeframe, the ability to streamline financial reporting, the ability to successfully develop licensing programs and attract new business, changes in demand for current and future intellectual property rights, legislative, regulatory and competitive developments addressing licensing and enforcement of patents and/or intellectual property in general, general economic conditions and the success of our investments. Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and any amendments to the forgoing, and other SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
The results achieved in the most recent quarter are not necessarily indicative of the results to be achieved by us in any subsequent quarters, as it is currently anticipated that Acacia Research Corporation’s financial results will vary, and may vary significantly, from quarter to quarter. This variance is expected to result from a number of factors, including risk factors affecting our results of operations and financial condition referenced above, and the particular structure of our licensing transactions, which may impact the amount of inventor royalties and contingent legal fees expenses we incur from period to period.
Rob Fink, 646-809-4048