HEAR - Turtle Beach says holder Immersion rejected its recent offer for board seats

2023-04-12 15:13:27 ET

Turtle Beach ( NASDAQ: HEAR ) said that holder Immersion Corp. ( NASDAQ: IMMR ) has rejected recent attempts to try to avoid a proxy contest.

The maker of gaming headphones said that Immersion ( IMMR ) recently rejected the company’s offer to accept two of its nominees to the board, have two incumbent directors resign, and the option to form a Value Enhancement Committee, according to a statement. Turtle Beach ( HEAR ) claims that Immersion has rejected three counterproposals that were made.

The Turtle Beach ( HEAR ) comments come after the gaming headphone maker late last month adopted a poison pil l amid a disclosure that Immersion ( IMMR ) had taken a 7% stake in the company. Turtle Beach shares jumped 9.4% on March 23 following disclosure of the Immersion ( IMMR ) stake in a 13D filing.

"Despite the company’s extensive efforts to engage with Immersion and find a mutually agreeable solution, Immersion appears to prefer waging a costly and distracting proxy contest at the expense of both Turtle Beach shareholders and Immersion shareholders," Turtle Beach said.

Turtle Beach ( HEAR ) fell almost 1% in trading on Wednesday.

The potential proxy fight comes after Turtle Beach ( HEAR ) announced in August that it ended plans to sell itself. Turtle Beach ( HEAR ) said it decided not to sell itself following a strategic review that included "discussions with 109 parties" about some kind of deal.

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