Sidus, BLR Partners urge Acacia Research shareholders to vote for board nominees
Sidus Investment Management and BLR Partners, collectively one of the largest stockholders of Acacia Research, with aggregate ownership of approximately 4.6% of the company's outstanding shares, sent a letter to stockholders in connection with their nomination of Clifford Press and Alfred Tobia Jr. to the Board of Directors at the upcoming 2018 Annual Meeting of Stockholders, scheduled to be held on June 14, 2018. The letter read, in part, "We collectively beneficially own approximately 4.6% of the outstanding shares of Acacia, making us one of the Company's largest stockholders. Despite our very significant ownership position, our repeated attempts to privately address our concerns with the Company in a constructive manner have been fruitless. Unfortunately, the incumbent Board and management team rebuffed our efforts, leaving us with no choice but to nominate two highly-qualified independent stockholder representatives, Alfred V. Tobia Jr. and Clifford Press, for election at the upcoming 2018 Annual Meeting. Our concerns with Acacia's governance and strategic direction have coincided with the appointment of G. Louis Graziadio, III as Executive Chairman of the Board on August 1, 2016 and the subsequent shift in Acacia's business model. In fact, since his appointment as Executive Chairman, Acacia's stock price has declined by approximately 41% while the NASDAQ Composite Index has appreciated by approximately 36%. Moreover, since Mr. Graziadio's long-term business associate, Frank E. Walsh, III, was appointed to the Board in April 2016, Acacia's corporate machinery has been manipulated such that 57% of the current directors have been hand-picked by the incumbent Board and never elected by stockholders. Even worse, it appears that the appointments of these unelected directors - James Sanders, Frank Walsh, Joseph Davis and Paul Falzone - are all directly linked to Mr. Graziadio. In a rare confluence of circumstances because of Acacia's classified Board structure, Mr. Graziadio and Mr. Walsh are up for election together at the upcoming 2018 Annual Meeting. This presents a unique opportunity for stockholders to right the ship at Acacia by returning the enclosed BLUE proxy card and electing Alfred V. Tobia Jr. and Clifford Press. In our view Mr. Press and Mr. Tobia would bring valuable corporate governance experience and technology investing expertise - and a stockholder-driven mindset, which the Board sorely needs if stockholder value is to be restored...he upcoming 2018 Annual Meeting scheduled for June 14, 2018 is a critical opportunity for Acacia stockholders to remove Messrs. Graziadio and Walsh from the Board and elect responsible representatives of their own choosing who have demonstrated expertise correcting governance failures. The time for change is now - We do not want any more money to be lost. Sidus urges all stockholders to vote the BLUE proxy card today! Only your latest dated proxy card counts."