THQ plans a reverse stock split to avoid Delisting in NASDAQ

Posted on May 28 2012 - 11:33am by Moises Garza
THQ plans a reverse stock split to avoid Delisting in NASDAQ
Categorized as
379
Tagged as

At THQ have not been so easy with out their financial crisis they have been enduring through. So THQ filed plans with the SEC so they may have a stockholders meeting on Friday to be scheduled on June 29,  which the company will propose a reverse stock split to avoid getting delistedfrom NASDAQ.

The company described in the filling for the need of a reverse stock split to be able to maintain the $1 per share minimum that NASDAQ requires for all its listings. THQ has planned for one of the three options, a 1:3, 1:5, or 1:10 reverse stock split ratios. Basically if you join shares together it will make them have more value. So a 1:3 reverse stock split makes every share now have the weight of 3 making it more expensive.

The company’s stock is currently trading at 61 cents per share.

THQ received a delisting warning from Nasdaq on January 31, saying that THQ’s stock was trading below $1 per share requirement. It has until July 23 to meet-and-maintain that closing standard for at least ten consecutive business days in order to be able to continue with its listing. THQ recently reported a net loss of $239.9 million for the fiscal year ending on March 31, 2012.

Source