Tue, Jan 31, 2012 | 13:39 GMT
THQ threatened with NASDAQ delisting
THQ has been threatened to be delisted by New York stock exchange NASDAQ after shares dropped below the $1 marker for 30 consecutive days.
NASDAQ has given the company 180 days – July 23 – to take care of the matter and boost its share price above the $1+ barrier, which must remain consistant for ten days.
“In accordance with Marketplace Rule 5810(c)(3)(A), the Company has a period of 180 calendar days, or until July 23, 2012, to regain compliance with the Rule,” reads a Form 8K sent by the company this morning.
“If at any time before July 23, 2012, the bid price of the Company’s common stock closes at or above $1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written notification that the Company has achieved compliance with the Rule.
“If compliance with the Rule cannot be demonstrated by July 23, 2012, the Company’s common stock will be subject to delisting from The Nasdaq Global Market.”
If it does fail to meet the goals and end up getting delisted, THQ can appeal the decision. However, it may also still be able to trade under the NASDAQ label if it can adequately explain why it should.
“In the event that the Company receives notice that its common stock is subject to being delisted from The Nasdaq Global Select Market, Nasdaq rules permit the Company to appeal any delisting determination by the Nasdaq staff to a Nasdaq hearings panel,” continues the 8K.
Alternatively, NASDAQ may permit the Company to transfer its securities to The Nasdaq Capital Market if it satisfies the requirements for initial inclusion set forth in Marketplace Rule 5505, except for the bid price requirement.”
If accepted, THQ would have an additional 180 days to get its affairs in order.
The publisher has been under a fair amount of rumour and speculation on its future recently, following reports that it sheleved its FY2014 lineup, as well as it offering itself for sale and selling Vigil MMO Warhammer 40k: Dark Millennium Online. This was denied, however.