Video game peripheral maker Mad Catz has received notice the New York Stock Exchange is working to have it removed from trading due to its "abnormally low" stock value, and the company says it will not appeal the process.
The NYSE is making good on its threat back in January to delist Mad Catz if it could not sustainably increase the value of its stock, which was then trading for roughly $0.15 apiece, within six months. At the time, Mad Catz representatives said they were going to try and raise the stock price by winning shareholder approval for consolidating stock via reverse stock split.
Now, less than two months later, it seems that didn't work out; shares in Mad Catz were recently being traded on the NYSE for roughly $0.02 apiece, and the NYSE has suspended trading in it as it works with the Securities and Exchange Commission to have Mad Catz removed.
This is a bad sign for the company, but it's not the end of it as a publicly-traded concern; after being delisted from the NYSE Mad Catz stock will be traded on the "OTC Pink" U.S. financial market for so-called "over-the-counter" securities.
This is fallout from the very rough 2016 Mad Catz had, when it sold off its entire Saitek division for $13 million after reporting a full-year loss of $11 million and laying off ~37 percent of staff in a cost-cutting restructuring plan.