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THQ Will Reverse Stock Split To Stay Listed In Nasdaq

A reverse split of THQ's stock will go into effect on July 5th, with a fixed ratio of 1-for-10.

It has been a troubling year for AAA publisher THQ as they continue to fight to stay in the stock exchange. Today, stockholders have approved a reverse split of its stock helping to prevent the company being delisted from Nasdaq. The WWE and Saint's Row publisher is now on the clock to raise their stock prices above the minimum amount. How did THQ get in this position? Well a few things. A reverse split of THQ's stock will go into effect on July 5th, with a fixed ratio of 1-for-10. Currently THQ has $68.5 million shares, but this move will reduce the stock to $6.9 million. Making things worse, THQ has until July 23rd to make the stock over one dollar for ten consecutive business days. One of the biggest reasons the company is in this position is because of their entry into the tablet market. Early in 2011, THQ released a tablet called uDraw. The tablet is no longer made, but the expense set THQ back 100 million dollar's back and changed the climate around the company. Another contributing factor was the under performance of key AAA titles. THQ started to dip in the stock market when Homefront didn't meet critical and financial exceptions resulting in the stock dropping 25 percent. Saints Row 3 had critical success, but poor positioning during the holiday season limit its market. THQ is in a very bad situation, but there is hope for the publisher. Darksiders 2 is shipping this fall and South Park, Metro: Last Light and Devil€™s Third are all scheduled for their fiscal 2013 year. Is it to late to save THQ? Sound off in the comments below. Source: Gamasutra
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