Sections

THQ plans reverse stock split

The company will be delisted from NASDAQ July 23 unless something is done

THQ filed a notice with the SEC on May 25 for a June 29 stockholder's meeting, where THQ will ask stockholders to approve a reverse split of the company's common stock. This is a necessary step for the company to avoid the delisting of the stock from NASDAQ. The exact nature of the reverse split has yet to be determined, either 1 for 3, 1 for 5 or 1 for 10.

1

NASDAQ rules require stocks to have a value greater than $1 per share in order to be listed on the exchange. THQ's stock fell under that level last year, and the company was sent a notice in January of this year that they had 180 days to bring the value above $1 per share before official delisting on July 23. Currently, the stock is trading at 61 cents per share, nowhere near the threshold value.

Regardless of the ratio chosen, the reverse split will not affect the market value of the company, which currently stands at $41.75 million, or about what it costs to develop a mid-range console game.

Related stories

Six ways to make the most of Video Games Tax Relief

Altara Games' Ella Romanos explains why there is no longer a barrier to UK studios who want to benefit from this government incentive

By Ella Romanos

Waypoint publisher Vice Media takes $450m investment

CEO Shane Smith listed gaming as one area of expansion in bid to build "the largest millennial video library in the world"

By Matthew Handrahan

Latest comments (2)

Jeffrey Ates Critic/Writer/Enthusiast 5 years ago
NOOOOOOOOOOO
THQ, WE NEED YOU GUYS :(((
0Sign inorRegisterto rate and reply
Rick Lopez Illustrator, Graphic Designer 5 years ago
Comon THQ... hang in there... Been playing the hell out of Saints Row the 3rd and cant wait for darksiders 2. You have my money, just stay alive.
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.