THQ Reverse Stock Split Gets Them Back In NASDAQ Compliance
Back to good. For now.
Stock exchange NASDAQ has notified publisher THQ that they're back in compliance after maintaining a closing stock price of over $1 for 10 consecutive business days.
The company managed this by conducting a ten-to-one reverse stock split, which consolidated their 70 million shares to 7 million, thereby inflating the stock price. Currently, THQ's market capitalization sits at $35.4 million and its stock is trading at around $5.16 as of today. The company has had to scramble to keep things going relatively normally, and their hope is that future AAA titles really hit big. For instance, Darksiders II, perhaps their most important game, is scheduled to launch in only a few weeks (August 14).
CEO Brian Farrell is on the record saying they need to focus on "great products" in both the short- and long-term. The good news, however, is that the "heavy lifting is done."
7/24/2012 9:22:58 AM Ben Dutka