One for 10 reverse stock split to save the day
THQ continues to fight on almost every front for its very existence. The latest fight THQ has on its hands is to stop the NASDAQ stock exchange from delisting the company. Necessity is the mother of invention; and THQ has come out swinging with a one for 10 reverse stock split that it believes will raise the price of the stock to well over one dollar, which should keep the delisting wolf from getting in the door.
THQ has been fighting delisting for a time, and while it has slimmed down and put much in place to turn the company around, it is a long road back and it will be difficult. This reverse stock split is just the latest in a series of challenges that the company will have to tackle on the road back to profitability.
The next milestone looks to be the release of the Darkness II, which is coming in August, and it does appear to have a chance to turn around the fortunes of THQ. Early buzz is strong and pre-order numbers are said to be good. We will see when the game finally is released in August. In the meantime, THQ is also gearing up to deal with a class action suit over U-Draw. There is no word yet on how the company plans to deal with this challenge.