In a move to avoid delisting, THQ stockholders approved a reverse split fixed by the board of directors at 1-for-10.
The split is intended to give the company some breathing room while it releases highly anticipated titles like Metro: Last Light (pictured) and South Park: The Stick of Truth. The company also has the next iteration of its popular Saints Row franchise and a follow-up to Homefront already in the works.
In order to regain compliance with NASDAQ’s minimum bid price requirement, THQ’s common stock must have a minimum closing bid price of $1.00 per share for a minimum of 10 consecutive trading days. Check the latest share price here [THQI].
The record date for the stock split is expected to be July 5, with selling on that basis commencing on July 9. It will reduce the number of shares outstanding from approximately 68.5 million shares to approximately 6.9 million. The number of authorized shares of the company’s common stock will not be affected by the reverse stock split. THQ released a FAQ on the subject, which is posted below.
THQ – http://www.thq.com
Wall Street Journal – THQ Shareholders Approve 1-for-10 Reverse Stock Split
Gamasutra – A long road to recovery for once-mighty THQ