THQ threatened with NASDAQ delisting
Tuesday, 31st January 2012 at 11:41 am
Embattled publisher has traded below $1 for more than 30 days
THQ has 180 days to reverse its poor share price or be delisted from the NASDAQ stock exchange, officials have warned.
The struggling publisher is currently trading at $0.70, with shares falling another 2.3 per cent last night.
The delisting warning has been issued because THQ has traded below the $1 threshold for more than 30 days.
To avoid delisting, THQ common stock must close above $0.99 per share for at least 10 consecutive business days.
THQ would be able to appeal should it be delisted. There is also a possibility to extend the 180 day deadline.
THQ’s fortunes downturned sharply following the release of its casual product, U Draw.
“U Draw performed OK in the US when it first arrived in 2010, and performed solidly in Europe in early 2011. But when THQ relaunched the platform over Christmas last year, which included versions for PS3 and Xbox 360, revenues were well below expectations," says MCV deputy editor Chris Dring.
"That led THQ to lay off staff from the development team, including kids, family and casual boss Martin Good."
In the past twelve months THQ has closed several games studios across the globe as part of a cost-cutting operation.
Kaos in New York, as well as studios in the UK and Australia, have all been emptied.
THQ appears to be betting the bank on its subsidised Montreal mega-studio, which is planned to house several hundred developers to make a range of triple-A games in tandem.
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