Publisher and developer Midway (This Is Vegas
) has been warned that it risks being delisted from the New York Stock Exchange (NYSE), as its share price continues to fall.
In order to be listed on the New York Stock Exchange every company is required to maintain a minimum average closing price of $1.00 per share over 30 consecutive trading days, but following a series of recent setbacks, Midway has been unable to comply with this rule.
The Mortal Kombat
creator has been hit by a number of setbacks this year, includomg layoffs at its Austin studio
earlier in the year and around 20 to 30 staff redundancies more recently in Chicago
Midway chairman Shari Redstone also recently resigned
from the company’s board of directors as financial results
continued to disappoint.
Under NYSE rules, Midway now has six months (plus possible extensions) to remedy the problem, during which time shares will continue to be listed and traded. Midway has already indicated that it plans to reply to NYSE officials and assure them that it will address the issue.