Majesco closes at under $1
Majesco will once again appeal its Nasdaq stock delisting expected next week and seek a reverse stock split to regain compliance. The Cooking Mama and former Zumba publisher has been out of compliance with the stock exchange since March 1, 2013, which requires a $1 minimum share price.

The company is currently trading at $0.53/share. Majesco Chief Financial Officer Michael Vesey informed Joystiq earlier today the company will seek a reverse stock split between 1-for-3 and 1-for-10 with shareholders in April. This will shift the stock's price between $1.09 and $5.30 (based on today's value), depending if shareholders approve.

What happens if shareholders don't approve? "Plenty of companies trade 'over the counter' without affiliation to a major exchange," Jeff Reeves, editor at InvestorPlace explains. "While there's admittedly less legitimacy or prestige for stocks that trade off the NYSE or Nasdaq in the eyes of some investors here, it's not an unmanageable situation. In fact, European consumer giant Nestle actually doesn't affiliate with the NYSE or Nasdaq and chooses to list OTC."

"Majesco's biggest problems are that revenue has been pressured in 2013 and the company is running at a significant loss without a lot of wiggle room," Reeve continued. "Over-the-counter stocks can trade for years and NYSE listed companies can still go bankrupt tomorrow. Sales and profits determine what's next for Majesco, not the specifics of what exchange it trades on."

A reverse stock split is how THQ tried to rescue itself in mid 2012, but six months later it became clear there was no salvation and the company entered bankruptcy and eventually liquidated.

This article was originally published on Joystiq.