Publisher attempts to bring share price above $1 minimum
Cooking Mama and Zumba publisher Majesco is readying to appeal a Nasdaq stock delisting expected next week, as the firm is currently trading under the $1/share minimum.
Majesco Chief Financial Officer Michael Vesey told Joystiq the company will seek a reverse stock split between 1-for-3 and 1-for-10 with shareholders in April. This would shift the stock's price between $1.09 and $5.30, based on yesterday's value of $0.53/share – and that's all dependent on if shareholders approve.
If they don't, “plenty of companies trade 'over the counter' without affiliation to a major exchange," InvestorPlace editor Jeff Reeves further explained to the site.
"While there's admittedly less legitimacy or prestige for stocks that trade off the NYSE or Nasdaq in the eyes of some investors here, it's not an unmanageable situation. In fact, European consumer giant Nestle actually doesn't affiliate with the NYSE or Nasdaq and chooses to list OTC.”
Our sister-site MCV has the full story.