Posted by Chuck Corbin on Jul 25, 2012

THQ Finally Gets A Break

As many of you are aware, THQ has not been doing too well lately. When the uDraw failed, the stock price plummeted to a level that nearly caused them to be delisted from the NASDAQ stock exchange. And what’s more, despite many of their best efforts to raise the stock price, from closing down studios and firing workers to “trim off the fat”, so to speak, THQ was unable to raise their stock price by more than a few cents at a time.

Luckily for THQ, however, they had one last trick up their sleeve. By performing what is called a 10 to one reverse stock split, they would be able to artificially raise the stock’s price by consolidating ten shares of the old stock into one. After performing above $1 a share for 10 consecutive days, THQ is now no longer under threat of being delisted from the NASDAQ.

Of course, they’re not out of hot water yet. A lawsuit was filed recently from shareholders who feel that THQ misinformed them about the performance of the uDraw. Even if THQ were to win this case the fees themselves could be enough to really screw the company over, seeing that the company is worth only about $35.4 million. But still, THQ must still be able to breathe a sigh of relief for at least one day.


Post a Comment
Powered by WordPress | Designed by Elegant Themes