Acclaim Entertainment Adopts Shareholder Rights Plan.Business Editors GLEN COVE Glen Cove, city (1990 pop. 24,149), Nassau co., SE N.Y., on the north shore of Long Island, at the entrance to Hempstead Harbor; settled 1668, inc. as a city 1918. , N.Y.--(BUSINESS WIRE)--June 6, 2000 Acclaim Entertainment, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AKLM AKLM Acclaim Entertainment, Inc. (stock symbol) ), a developer, publisher, distributor and marketer of video and computer games, announced today that its Board of Directors adopted a Shareholder Rights Plan to deter unfair takeover tactics. The Rights Plan is designed to deter and to prevent an acquirer from gaining control of the Company by accumulating shares in the open market or through private transactions without offering a fair price to all shareholders. The distribution of the Rights is not intended to prevent a takeover of the Company and should not deter any prospective bidder willing to negotiate with the Board of Directors and pay a full and fair price for the Company's shares. The Rights will be distributed to shareholders as a dividend at the rate of one Right for each share of common stock, $0.02 par value, of the Company held by shareholders of record as of the close of business of June 21, 2000. Each right initially will entitle en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: shareholders to buy one one-thousandth of a share of a new Series B Junior Participating Preferred Stock Participating Preferred Stock A type of preferred stock that, under certain conditions, gives holders the right to receive earnings payouts over and above the specified dividend rate. at an exercise price of $30 per Right, subject to adjustment. Because the Rights will not initially be exercisable and will trade with the common stock, separate Right certificates will not be provided to shareholders at this time. The Rights generally will be exercisable only if a person or group acquires beneficial ownership of 10% or more of the Company's common stock. The Company also announced that it has adopted certain changes to the Company's By-Laws which are designed to enhance the Company's corporate preparedness pre·par·ed·ness n. The state of being prepared, especially military readiness for combat. Noun 1. preparedness - the state of having been made ready or prepared for use or action (especially military action); "putting them . A copy of the Rights Agreement and By-Laws amendments will be filed shortly with the Securities and Exchange Commission. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . There are certain important factors that could cause results to differ materially from those anticipated by the statements made above. Such risks and uncertainties include, among other things, the rate of growth of the installed base of the next generation gaming and PC systems, the timely availability and acceptance of Acclaim's future products for such systems, the timing of the introduction of next generation systems, the Company's ability to develop successful products for those systems, the competitive environment in the consumer software and related industries, the management of inventories and operating overheads and the related impact upon liquidity should any of these risks occur. These and other risks and uncertainties are detailed from time to time in Acclaim's reports filed with the Securities and Exchange Commission. Background Information Acclaim is a worldwide developer, publisher and mass marketer of software for use with interactive entertainment platforms including Nintendo, Sony Computer Entertainment America and Sega hardware systems, and PCs. Acclaim owns and operates five software developmeNt studios located in the U.S. and the U.K. where it develops its own software, and a motion capture studio in the U.S. Acclaim distributes its software directly in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , the U.K., Germany, France, Spain and Australia. Acclaim also distributes software developed and published by third parties and develops and publishes strategy guides relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its software and comic book comic book Bound collection of comic strips, usually in chronological sequence, typically telling a single story or a series of different stories. The first true comic books were marketed in 1933 as giveaway advertising premiums. magazines. For more information, please visit our website at http://www.acclaim.com. |
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