Embattled publisher THQ has enacted a reverse stock split in an effort to push its shares over the required $1 threshold to stay listed on the Nasdaq stock exchange, it has announced.
The ratio for the reverse stock split is fixed at 1-for-10, with trading expected to begin at the new rate starting next week on July 9th.
The split, approved by the board of directors, will reduce the number of shares outstanding from approximately 68.5 million shares to 6.9 million. The move will not change the shareholders’ equity.
The publisher hopes that the drastic changes will mean share prices for the company rise and take it above the $1 threshold, which it must stay over for at least ten days or risk being delisted.
The company said however that there is no guarantee the move will have the desired affect.
The move comes as new president, Naughty Dog founder Jason Rubin, enacts sweeping changes across the company in an effort to restructure it into a core games developer, having recently shut its Spain and Italy publishing arms and implementing sweeping layoffs.