NTDOF - Immersion: Shares Should Rebound Automotive The Long-Term Catalyst

• Immersion Corporation terminated its “at the market” equity offering program after selling roughly 3.3 million shares, with net proceeds to the company of approximately $36.3 million.
• Immersion's equity offering looks like smart financial engineering, taking advantage of an expectation-driven spike in its stock price, mostly caused by momentum-player investors.
• Its termination will remove a major overhang on IMMR share price, that declined roughly 40% during the ATM program.
• Inflated expectations from SONY’s haptic-enabled PlayStation 5 launch represented the catalyst for Immersion’s stock upward move. We expect a relatively limited impact on revenues.
• We believe the automotive sector will represent IMMR long-term inflection point.

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