THQ Fights To Stay On NASDAQ
Posted on Monday, July 2 @ 08:09:15 Eastern by Keri_Honea
THQ, for obvious reasons, really does not want to get booted off of NASDAQ. If that were to happen, we could go on ahead and sing the funeral march for the publisher, as sad as that would be. THQ has another trick up its sleeve, however, in the form of a reverse stock split.
The publisher's Board of Directors agreed to set the reverse split stock ratio at 1-for-10, which will start on July 9th. So what does this mean? Every ten shares of THQ's current common stock will automatically become one share, which will reduce THQ's shares from 68.5 million to 6.9 million.
And why would they do this? THQ wants to raise the per-share trading price of its stock to at least $1.00 in order to remain compliant with NASDAQ's listing requirements. Per NASDAQ's orders, THQ has until July 23rd to boost its stock value to at least $1.00 for 10 consecutive days. If not, well, I think you know what that means. This move isn't guaranteed to work, but at this point, it's one of the only options they have, sadly enough.
As of the market closing on Friday, THQ stock was at $.62 per share.
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