Mad Catz Interactive's ghastly run of business has continued with the publication of a delisting warning from the New York Stock Exchange, giving the peripheral specialist six months to drastically improve its share price if it wants to keep trading its stock.
In a statement published by the company, the board says that it intends to pursue a reverse stock split, amalgamating shares in order to increase their trading price. In order to do so, the board will need to secure shareholder approval. Even then, stock will need to close at a price of over $1 for thirty consecutive days in order to secure the company's future on the NYSE. Stock price at the time of writing was just $0.15.
"The Company anticipates that it will seek shareholder approval to effectuate a reverse stock split of the Company's currently issued and outstanding Common Stock at its next annual meeting," the statement reads.
The announcement marks another difficult chapter in a long period of decline for the firm. In January 2016, the company's CEO, general counsel and Chairman all resigned, with the company axing 37% of its staff shortly afterward.
But the biggest factor was the poor performance of Rock Band 4, which Mad Catz joint published with developer Harmonix. Both companies were badly burned by the game's low sales, however, with Mad Catz losing $11m in the relevant quarter, a loss largely attributed to the lock of ROI on the game. Not long after that disastrous quarterly report, the company expressed serious doubts about its survival to the SEC.
Some cash was recouped in September last year when Logitech bought Saitek from the firm for $13 million, but the cash injection has failed to revive the firm's fortunes.