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THQ threatened with NASDAQ delisting

Tuesday, 31st January 2012 13:39 GMT By Johnny Cullen

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.

It announced last week it was refocusing its efforts on core titles and moving away from kids games. Its also had two recent rounds of job cuts in the past week.

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4 Comments

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  1. Gheritt White

    Shame. Danny Bilson is a ledge.

    #1 2 years ago
  2. DSB

    It’s pretty worrying that they aren’t being bought out, but there’s a chance that bidders are waiting for Brian Farrel to balance it out.

    Farrel is definitely the problem. He must have a lot of friends on the board to still be in business. He is the chairman, but he obviously hasn’t acted in the company’s best interest.

    #2 2 years ago
  3. silkvg247

    Worth buying some shares?

    #3 2 years ago
  4. TBell

    THQ is a collection of talented studios surrounded by one of the worst management and marketing teams in the business–a team that over-hypes and under-delivers, which is unfortunate.

    It does not speak well of the free market when a studio can go from a $35 stock price to 65 cents, yet the CEO who oversaw the drop continues to receive a > 1 million dollar salary.

    Here’s some shocking numbers. THQ’s current market capitalization is 46 million. The total compensation last year for the four members of the management team, Brian Farrell, Paul Pucino, Danny Bilson, and Ian Curran was 2.44 million, or 5.3% of the market cap for THQ. If Apple, a far greater success, paid their team the equivalent, it would be 21.2 billion. Yikes!

    And now it’s too late for them to go without taking THQ down with them.

    #4 2 years ago