THQ staves off NASDAQ delisting
Hang in there, kitty.
THQ has avoided a delisting on NASDAQ following a one for 10 reverse stock split.
This move - detailed on the publisher's investor page - consolidates THQ's 68.5 million shares to approximately 6.9 million, raising the value of each unit of common stock to well over one dollar.
THQ has been in danger of a delisting since January after its stock fell under the one dollar mark for over 30 days. In order to avoid this, it needs to raise its stock value to over one dollar and keep it there for 10 consecutive days before 23rd July.
There's no telling if this eleventh hour effort will work. "There can be no assurance that the reverse stock split will have the desired effect of raising the closing bid price of THQ's common stock to above one dollar per share to meet this requirement," said the publisher.
Contributing to THQ's shaky financial state is its uDraw peripheral falling a whopping $100 million short of the publisher's expectations, resulting in a $30 million operating loss in the quarter.
In the meantime, THQ is launching Darksiders 2 in August for Xbox 360, PlayStation 3, and PC.
