Business
Acacia Research Completes All Aspects of its Strategic Partnership with Starboard Value
Stockholders Vote in Favor of the Transaction; Company Closes Warrant Issuance Company to Release Fourth Quarter and Full Year 2019 Financial Results on
About this update from Acacia Research Corporation
[{"type":"text","content":"\nStockholders Vote in Favor of the Transaction; Company Closes Warrant Issuance\n\n\nCompany to Release Fourth Quarter and Full Year 2019 Financial Results on March 12, 2020\n\n NEW YORK--(BUSINESS WIRE)--\nAcacia Research Corporation (“we”, \"Acacia\" or \"the Company\") (Nasdaq: ACTG) today announced that at a Special Meeting of Stockholders both proposals detailed in the company's proxy statement dated January 17, 2020 were approved. More than 82 percent of the votes cast were in favor of the proposals for the issuance of securities in connection with the Transaction, as defined in the proxy statement, and amending Acacia's Certificate of Incorporation to increase the number of authorized shares of common stock from 100 million to 300 million.\n\n\nClifford Press, Acacia’s Chief Executive Officer, commented, “We are gratified that Acacia shareholders have expressed strong support for this transaction. Our partnership with Starboard provides us access to capital and resources that will significantly expand our ability to pursue investment opportunities of greater scale. Starboard is the ideal partner for Acacia as we work to leverage our substantial net tax assets and advance our absolute return investment strategy to create value for shareholders.”\n\n\nFollowing the receipt of shareholder approval at its Special Meeting of Stockholders on February 14, 2020 and pursuant to the company's proxy statement dated January 17, 2020, Acacia entered into a securities purchase agreement with one or more of Starboard Value’s affiliates and issued 100,000,000 Series B Warrants for aggregate purchase price of $4.6 million.\n\n\nAl Tobia, Acacia’s President and Chief Investment Officer, commented, “We are actively researching a wide range of investment opportunities. During this period our goal is to preserve intrinsic value while working to complete our investment opportunities. Our stock is trading at a steep discount to intrinsic value ($3.54/share), represented by cash plus invested assets as of the Third Quarter 2019. Based on our current operating plan, we would expect to use no more than 5% of our current cash balance on operating expenses and investment due diligence between now and the completion of an Approved Investment or the commencement of first redemption test period in August 2021, as outlined in the proxy.\n\n\nFourth Qua...