THQ facing Nasdaq delisting
THQ has been warned that it will be delisted from the Nasdaq stock exchange unless it can drag its share price out of the doldrums in the next six months.
The publisher has today filed documents with the US Securities And Exchange Commission in which it reveals that Nasdaq has given it until July 23 to raise its share price above $1 and keep it there for ten days, the minimum requirement for a Nasdaq listing.
THQ has faced this before. In 2007, it was threatened with delisting for delaying the release of its financial results while it completed an internal investigation into stock option grants. While that was smoothed over when it eventually filed its fiscal results with the SEC, by contrast this has been a miserable start to 2012 for the publisher.
First, it was forced to deny rumours that it had cancelled its entire 2014 release slate and the Warhammer 40,000: Dark Millennium Online MMOG, and returned IP rights to Disney without seeking a refund. Then came the complete withdrawal from development of licensed kids' games, and an unspecified number of layoffs across its admin and publishing departments.
A group of former THQ staff wrote to its board of directors calling for the heads of several senior executives, including CEO Brian Farrell, who was singled out for presiding over, and failing to address, a decline in the company's share price. When he was appointed in 1995, THQ's shares were worth $30 apiece; at the close of Nasdaq trading last night, they cost just 70¢.