THQ filed plans with the SEC Friday for a June 29 stockholders meeting, where the company will propose a reverse stock split to avoid delisting from NASDAQ.
In the filing, the company describes the need for the stock split to maintain the $1 per share minimum that NASDAQ requires for listing. THQ outlined three options in the process: 1:3, 1:5, and 1:10 reverse stock split ratios. Exercising any of these options results in fewer outstanding shares with an increased apparent
value per share. For instance, should THQ perform a 1:3 reverse stock split, each stockholder would own one stock for every three owned prior to the split, even though the total
value of the company's stock would not change.
The company's stock is currently trading at 61 cents per share.
THQ first received a delisting warning
from Nasdaq on January 31, noting that the company's stock was trading below $1 per share. It has until July 23 to meet-and-maintain that closing standard for ten consecutive business days in order to be eligible for continued listing. THQ recently reported a net loss
of $239.9 million for the fiscal year ending on March 31, 2012.