THQ could be delisted from the NASDAQ
THQ is going through tough times, their share value has fallen a lot, and is basically under $1 now. Their market capitalisation is insignificant. There have been no reports of takeover yet.
So what could the company do now? They have assured everyone in a recent statement that things are well in the company, but it doesn’t seem to be so.
The latest news is that they have been threatened with a NASDAQ delisting, because their share value is lower than $1.
They have till July 23 to boost their share price above $1, and it seems THQ is capable of doing that, but this must be really bad news for their investors.
“In accordance with Marketplace Rule 5810(c)(3)(A), the Company has a period of 180 calendar days, or until July 23, 2012, to regain compliance with the Rule,” reads a Form 8K sent by the company this morning.
“If at any time before July 23, 2012, the bid price of the Company’s common stock closes at or above $1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written notification that the Company has achieved compliance with the Rule.
“If compliance with the Rule cannot be demonstrated by July 23, 2012, the Company’s common stock will be subject to delisting from The Nasdaq Global Market.”
THQ can appeal if they get delisted and still trade, but it depends on whether they are allowed to do so, or present a strong case that the share value is temporary and can be strengthened later.
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