Publisher looks to avoid NASDAQ delisting with new stock market strategy
THQ is going to great lengths in effort to keep its Nasdaq listing.
The publisher has revealed through its investor site that it has filed plans with the SEC for a June 29th stockholders meeting, where it will propose a reverse stock split to avoid delisting from Nasdaq.
THQ describes the need for the stock split to maintain the $1 per share is required in the filing, outlining 1:3, 1:5, and 1:10 reverse stock split ratios as potential options. Exercising any of these choices will result in fewer outstanding shares, with an increased apparent value per share.
If the company performed a 1:3 reverse stock split for example, stockholders would own one stock for every three owned prior to the split. The fact that there’d be no change in the total value of the company's stock wouldn’t come into play.
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