THQ may be delisted from Nasdaq in July
The Nasdaq stock exchange told THQ on Tuesday that the Saints Row
publisher has 180 days to raise its stock prices above the minimum threshold, or else it will be delisted.
The decline of THQ has been a long and drawn-out affair. The publisher looked like it would be a strong contender in the games publishing arena back in 2007, when stock prices peaked at over $35 per share on the back of licensed video games like Pixar's Cars
But there's a much different story today. The company has until July 23 to maintain a share price of $1 per share for 10 consecutive days. Its stock is currently listed at 70 cents per share, and falling.
The delisting warning comes just after analysts predicted that
THQ may have run out of cash by the first quarter of the next fiscal year.
And the publisher has been undergoing significant restructuring just this month. Last week, THQ announced that it would completely exit the once-lucrative
licensed kids game business, and reports emerged that the company was laying off staff
in Australia, and closing its Japan studio. Last year saw even bigger layoffs
As noted by Gamasutra's Chris Morris
earlier this month, this warning does not mean that a delisting is certain, as THQ has a number of methods for remedying the situation.
In case the stock doesn't turn around of its own accord, the company may choose to solve the problem via a reverse stock split, which would essentially reduce the number of total shares, so each one is more valuable.
If this doesn't work, there's still an opportunity for a hearing that could extend the probationary period -- if THQ can point to a strong lineup of games in development, that could be enough to convince Nasdaq to give it some extra time.