Struggling game publisher Acclaim Entertainment is looking to sel...
Struggling game publisher Acclaim Entertainment is looking to sell more stock and other securities to help fund its operations, Glen Cove, N.Y., company said in preliminary proxy SEC filing Tues. Acclaim’s auditor, KPMG, said in publisher’s annual 2003 fiscal…
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report earlier this year that it questioned Acclaim’s ability to continue as going concern because of lack of capital and shortage of cash (CED May 22 p4). Acclaim said in SEC filing Tues. that its annual stockholders meeting will be held Sept. 5 at Wyndham Windwatch Hotel in Hauppauge, N.Y. There, stockholders will be asked to vote on proposal to issue as many as 30 million shares of Acclaim stock or other securities over course of 6 months that follow meeting. Stockholders will also be asked to elect 7 directors and ratify appointment of KPMG as its auditor for next fiscal year. Acclaim also said in filing that it agreed to 2-year contract extensions with co-chmn. Gregory Fischbach and James Scoroposki through Aug. 2005 for $775,000 and $500,000 salaries and bonuses of 3.25% and 2.75% of company’s annual pretax profit, respectively. Filing said Fischbach and Scoroposki received $452,083 and $291,667 salaries in 2003. Meanwhile, filing said it entered into new employment deal with CFO-Exec. Vp Gerard Agoglia providing for him to remain in current positions until June 2006 (but to be renewed annually without written notice) providing him with annual base salary of $371,000 and bonuses of up to 100% of his then base salary subject to achievement of goals established by company. He received $216,417 salary in 2003, filing said. CEO Rodney Cousens received $410,121 salary in 2003 and $800,000 bonus, filing also showed. Acclaim also said it forgave loan to former pres. Edmond Sanctis and agreed to continue his salary for one year. Hours after filing was made, company announced that it named Paul Eibeler, ex-Take-Two Interactive pres., pres.-COO of Acclaim N. America. Cousens said: “We have gone to great lengths to implement new systems to improve the way we design our products, manage our operating expenses and stabilize the organization so that it can attain a stronger position in the marketplace. An important part of this process includes strengthening our senior management team and we are very pleased to have Paul join us and lend his leadership skills and industry- wide credibility to help expedite our improved performance and success.” As Acclaim continues to face class-action lawsuit alleging SEC violations among other things (multiple suits were recently combined into one complaint), company acknowledged late last week that SEC had targeted it and certain competitors as part of videogame industry probe (CED July 22 p4).