THQ to Propose Reverse Stock Split to Shareholders

May 29, 2012 -

In the hopes of avoiding being delisted from the NASDAQ stock exchange, THQ announced plans to offer a reverse stock split. The company needs to do this in order to maintain $1 per share, a key requirement of the exchange.

The company filed with the Securities and Exchange Commission that it plans to propose this reverse stock split at a June 29th stockholders meeting. If shareholders agree to it, the company would choose one of three options: a one for three, one for five, or one for ten stock splits. Exercising these choices will ultimately result in fewer outstanding shares, with an increased value per share.

The company that makes a number of popular titles including the Saint's Row series, UFC games and World Wrestling Entertainment titles received a delisting warning form NASDAQ in January of this year.

The stock is currently trading under $1. In order to avoid being delisted, the company needs to have ten consecutive business days above $1 by July 23.

Earlier this month, THQ reported a net loss of nearly $240 million for its past fiscal year, but that loss was a lot smaller than most analysts had expected...

Source: MCV by way of Develop


Comments

Re: THQ to Propose Reverse Stock Split to Shareholders

Anyone take a look at Left Behind Games lately? Their stock has plumeted to 1% of 1 penny now. No word of a lie.

Re: THQ to Propose Reverse Stock Split to Shareholders

THQ is going to fail. I just don't see anything coming up that would preserve its existence. This reverse stock split might save its stock in the short term, but in a few months, it will probably right back to this point. A serious dearth of good games is not helping it at all.

Re: THQ to Propose Reverse Stock Split to Shareholders

After Saints Row the third, I'm not surprised.

I know Volition did development, but I imagine THQ was partly behind all the good parts from SR2 being gone.

 
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