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.
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.
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