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.
