Mad Catz At Risk Of Being Delisted From The New York Stock Exchange
Mad Catz must show its claws, or risk being neutered.
Peripherals maker Mad Catz has been in trouble for more than a little while, and it seems those troubles are far from over with the announcement it may soon be dropped from the New York Stock Exchange (NYSE).
"Due to the company's current low selling share price," Mad Catz stated today in a letter to investors, reports Polygon, "the company's continued listing on the [NYSE] is contingent upon the company effecting a share consolidation or otherwise demonstrating a sustained improvement in its share price within the next six months."
The root of the company's problems seems to be the loss of a USD$11 million bet on its decision to co-publish Rock Band 4 alongside Harmonix. After signing, Mad Catz failed to meet the earnings terms of one of its creditors, resulting in the company shedding several executives, and laying off 37 percent of its workforce. Harmonix took its business to PDP, leaving Mad Catz out in the cold.
Mad Catz' statement concluded with the intention to perform a "reverse stock split," to reduce the total number of available shares. Mad Catz Interactive, Inc. is currently trading at 0.15 per share.