Though THQ is far from in the clear, one headache has been removed: the threat of being delisted on the NASDAQ stock market.
The publisher announced this morning it had maintained $1.00 per share price during last 10 business days, meaning it’s no longer on NASDAQ’s watch list. "Phew," said THQ management. Probably.
THQ made some moves lately, including a 1-to-10 reverse stock split, that helped make this happen.
The Street has an informative article on why a NASDAQ delisting is bad for all parties involved, including the one case where it could be a good thing: the company make that decision on its own.
“Still, as a shareholder, having your company delisted can have severe effects on your portfolio. Obviously, most companies that are delisted were in dire straits to begin with, but the act of delisting can actually force their stock prices to decrease further.
While the intrinsic value of the stock hasn't changed since the day before the stock was delisted, the very fact that it was ejected from its exchange is enough to make the market factors push its price even further below water. That stock that you once paid your hard-earned cash for is likely pretty close to worthless now.”
The weight on Darksiders II’s shoulders to perform well next month is even greater now.