THQ consolidates stock in bid to stay on NASDAQ
Company's board approves 1-for-10 reverse stock split maneuver in effort to raise per-share value to $1.00 or more before July 23 deadline.
Beleaguered Saints Row publisher THQ is hoping to remain listed on NASDAQ through a maneuver called a reverse stock split, approved by the Agoura Hills, California, company on Friday and announced today. NASDAQ issued THQ a delisting notice in January that threatened the game company's removal from the market if its share value did not rise in 180 days.
THQ's board of directors decided the reverse split stock ratio would stand at 1-for-10, with the move expected to commence on its split-adjusted basis at market opening July 9. As part of the process, every 10 shares of THQ's current common stock will automatically become one. The reverse stock split will reduce the number of THQ shares from about 68.5 million to approximately 6.9 million.
In a statement, THQ explained that the purpose of the reverse split stock is to raise the per-share trading price of its stock to $1.00 or above in an effort to regain compliance with NASDAQ's terms. THQ has until July 23 to boost its value to $1.00 or more for 10 consecutive days. If it is unsuccessful, the stock will be removed from NASDAQ.
At market close on Friday, THQ was trading at $0.62 cents per share.
THQ's reverse split stock is not a guarantee of success. The company said, "There can be no assurance that the reverse split stock will have the desired effect."
THQ recently canceled the Saints Row: The Third expansion Enter the Dominatrix. This content will be folded into the next Saints Row title, and the company expects to take a $20 million hit as a result.