- 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.
For further details see:
Immersion: Shares Should Rebound, Automotive The Long-Term Catalyst