THQ attempt to remain listed on the NASDAQ by announcing a 1-for-10 reverse stock split.
THQ has announced a 1-for-10 reverse stock split in order to raise the per share trading price of its common stock and meet the $1.00 per share minimum bid requirement for continued listing on the NASDAQ Global Select Market.
Expected as of July 5th, every 10 shares of stock will automatically convert into one share of stock. This will reduce the number of shares from 68.5 million to roughly 6.9 million.
According to the games publisher, to remain compliant with the minimum bid price, stock must have a minimum closing bid at $1.00 per share for at least 10 days; however, THQ maintains there can be no assurance that the reverse stock split will help raise the closing bid price to meet the requirement.
The company's common stock will continue to be reported on the NASDAQ under THQI, however THQ confirms a "D" will likely be added to the end of the trading symbol for 20 trading days to indicate the reverse stock split has occurred.
A reverse stock split reduces the number of a corporation's shares in an attempt to increase the value of its stock or its earnings per share.
Trading is expected to begin with the newly adjusted stock ratio starting July 9th.