THQ aims to avoid NASDAQ delisting with reverse stock split

THQ is going to great lengths in effort to keep its Nasdaq listing.

The publisher has revealed through its investor site that it has filed plans with the SEC for a June 29th stockholders meeting, where it will propose a reverse stock split to avoid delisting from Nasdaq.

THQ describes the need for the stock split to maintain the $1 per share is required in the filing, outlining 1:3, 1:5, and 1:10 reverse stock split ratios as potential options. Exercising any of these choices will result in fewer outstanding shares, with an increased apparent value per share.

If the company performed a 1:3 reverse stock split for example, stockholders would own one stock for every three owned prior to the split. The fact that there’d be no change in the total value of the company’s stock wouldn’t come into play.

THQ received a delisting warning from Nasdaq back in January, with the federal agency pointing out that the company’s stock was trading below $1 per share. The stock was trading at 61 cents per share as of last week.

The publisher must meet-and-maintain the required minimum for ten consecutive business days byJuly 23rdin order to be eligible for continued listing.

Earlier this month, THQ reported a net loss of nearly $240m for its past fiscal year.

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