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NASDAQ tells THQ they cool for now
THQ received notification from stock exchange NASDAQ that the company is back in compliance, having maintained a closing stock price of over $1 for 10 consecutive business days.The publisher accomplished the feat through a 10-to-one reverse stock split, consolidating THQ's 70 million shares to 7 million and inflating the price by moving the decimal point one space to the right. THQ's market capitalization now stands at $35.4 million, and its stock is trading at $5.16/share this morning.THQ has done the executive shuffle the past few months to get things back on track, adding new president Jason Rubin and announcing yesterday the addition of Relic founder Ron Moravek as "Executive Vice President, Production." THQ's next game is Darksiders 2, due on August 14.
THQ retains NASDAQ listing as board approves reverse stock split
THQ will keep its NASDAQ listing following the approval of a reverse stock split by its controlling board. Last week, stockholders met and approved a 10-to-one reverse stock split, effectively consolidating THQ's nearly 70 million stock units to around 7 million, and bringing their value from around $0.62 to $6.20 apiece. THQ risked delisting from NASDAQ due to shares trading below $1 for nearly 30 days, the cutoff for retaining NASDAQ listing status.The reverse split is set to go into effect on July 9 (next Monday). Initially, it will increase THQ's stock price well above the minimum $1 required, but it's unknown if that stock price will stay above $1 per share for 10 consecutive days – if it doesn't, THQ once again faces delisting.The next game THQ plans to launch is Darksiders 2 for Xbox 360, PlayStation 3, and PC on August 14.
THQ planning reverse stock split to avoid NASDAQ delisting
THQ filed plans with the SEC Friday for a June 29 stockholders meeting, where the company will propose a reverse stock split to avoid delisting from NASDAQ.In the filing, the company describes the need for the stock split to maintain the $1 per share minimum that NASDAQ requires for listing. THQ outlined three options in the process: 1:3, 1:5, and 1:10 reverse stock split ratios. Exercising any of these options results in fewer outstanding shares with an increased apparent value per share. For instance, should THQ perform a 1:3 reverse stock split, each stockholder would own one stock for every three owned prior to the split, even though the total value of the company's stock would not change.The company's stock is currently trading at 61 cents per share.THQ first received a delisting warning from Nasdaq on January 31, noting that the company's stock was trading below $1 per share. It has until July 23 to meet-and-maintain that closing standard for ten consecutive business days in order to be eligible for continued listing. THQ recently reported a net loss of $239.9 million for the fiscal year ending on March 31, 2012.
