Immersion Announces Adoption of Stockholder Rights Plan
As previously disclosed, Immersion recently executed a series of
restructuring actions designed to sharpen the Company’s strategic focus
and establish a more cost-efficient operating structure. In addition, on
The Board of Directors adopted the Rights Plan in light of the recent accumulation of meaningful positions in the Company’s shares by certain stockholders, to ensure that the Board remains in the best position to perform its fiduciary duties and enable all of Immersion’s stockholders to receive fair and equal treatment. The Rights Plan is designed to protect the interests of Immersion and its stockholders by reducing the likelihood that any person or group gains control of Immersion through open market accumulation, private transactions or other tactics without appropriately compensating the Immersion stockholders for such control and by providing the Board and stockholders with sufficient time to review and make informed decisions. The Rights Plan, which was adopted by the Board of Directors following evaluation and consultation with the Company’s advisors, is similar to plans adopted by numerous publicly-traded companies. It was not adopted in response to any specific takeover bid or other proposal to acquire control of the Company.
Pursuant to the Rights Plan, one preferred stock purchase right will be
issued for each share of common stock held by stockholders of record on
At any time after any person or group acquires beneficial ownership of 10% or more of Immersion’s common stock, the Board of Directors, at its option, may exchange each right (other than, as detailed in the Rights Plan, the person or group triggering the rights) in whole or in part, at an exchange ratio of one share of common stock per outstanding right (subject to adjustment).
The adoption of the Rights Plan will not be a taxable event and will not have any impact on the Company’s financial reporting.
Additional details about the Rights Plan will be contained in a Form 8-K
filed by Immersion with the
Immersion is the leading innovator of touch feedback technology, also
known as haptics. The company provides technology solutions for creating
immersive and realistic experiences that enhance digital interactions by
engaging users' sense of touch. With more than 2,600 issued or pending
patents, Immersion's technology has been adopted in more than 3 billion
digital devices, and provides haptics in mobile, automotive,
advertising, gaming, medical and consumer electronics products.
Immersion is headquartered in
Immersion and the Immersion logo are trademarks of
(IMMR – C)
Nancy Erba, 408-350-8850
Chief Financial Officer
Kensey Biggs, 212-371-5999 or 212-940-9519
Senior Vice President
MacKenzie Partners, Inc
Jeanne Carr, 212-929-5916