Peripherals manufacturer Mad Catz says they’ve received a warning that they are in danger of being dropped from the New York Stock Exchange (NYSE) due to low share price. Formal notice from NYSE, which came on Jan. 20, stated that the company must either consolidate shares or raise its share price over the next six months.
“Due to the company’s current low selling share price,” Mad Catz stated today in a letter to investors, “the company’s continued listing on the [NYSE] is contingent upon the company effecting a share consolidation or otherwise demonstrating a sustained improvement in its share price within the next six months.”
In April of 2015, Mad Catz announced that it would co-publish Rock Band 4 along with developer Harmonix. Several months later, the company notified investors that its dependence on sales from Rock Band 4 raised "substantial doubt about the company’s ability to continue as a going concern." In February 2016, its CEO resigned ahead of an annual earnings report. The next day, the company announced it would lay off 37 percent of its staff. Recently, it sold off the Saitek brand of flight control systems to competitor Logitech.
Mad Catz Interactive, Inc. is currently trading around 15 cents per share.
The statement concluded by saying the company would seek to conduct a “reverse stock split,” effectively reducing the number of shares in the wild. That move will require the approval of the company’s board of directors.