As part of a strategy to stay listed on stock exchange, THQ is planning to effect a reverse split of its common stock, to regain compliance with Nasdaq's $1.00 minimum bid requirement.
The Nasdaq stock exchange told THQ In January that the Saints Row publisher had 180 days to raise its stock prices above the minimum threshold, or else it would be delisted. With that time running out, THQ has called a special meeting of stockholders to discuss the reverse stock split.
The move is aimed at reducing the total number of THQ's issued and outstanding common shares, which THQ hopes will lead to an increase in the price per share.
Gamasutra predicted that THQ would go down this road back in January, with Gamasutra editor-at-large Chris Morris suggesting this would be the method used by the company to remedy the situation.
THQ has until July 23, 2012 to regain compliance with the Nasdaq, at which point the closing bid price for THQ's common stock must have been above $1.00 for at least 10 consecutive business days. The company plans to put the reverse stock split into effect on July 5.