THQ has confirmed that every 10 shares of its common stock will convert into one share, with the aim of raising the price of each individual share to over $1.00.
The Board of Directors fixed the ratio for the reverse stock split at 1-for-10 after approval by the shareholders, meaning that every 10 shares of THQ’s issued and outstanding common stock as of the record date for the reverse stock split, which is expected to be July 9, 2012, will convert automatically into one issued and outstanding share of THQ common stock.
The reverse stock split will reduce the number of shares outstanding from approximately 68.5 million shares to approximately 6.9 million.
The purpose of the reverse stock split is to raise the per share trading price of THQ’s common stock to regain compliance with the $1.00 per share minimum bid price requirement for continued listing of THQ’s common stock on the NASDAQ Global Select Market.
THQ says that there can be no assurance that the reverse stock split will have the desired effect of raising the closing bid price of THQ’s common stock to above $1.00 per share.