Please support Game Informer. Print magazine subscriptions are less than $2 per issue
Majesco Planning Reverse Stock Split To Avoid Delisting
Majesco (Cooking Mama, NBA Baller Beats) finds itself under threat of delisting from NASDAQ for the third time since 2008. The company was warned in March of last year that it needed to bring its share value above $1 for ten consecutive business days.
The company received a 180 day extension in August 2013, putting the deadline for compliance on February 24, 2014. Majesco seeks another extension via appeal, and is pursuing a reverse stock split to help boost the share value.
This tactic was last publicized when THQ executed the maneuver in May 2012. Majesco is seeking a reverse split in the range of 1-to-3 to 1-to-10. At the time of publication, the Majesco share value is $.54. In the past three months, it has not pushed past the $.75 mark.
It’s important to note that a reverse stock split doesn’t change the market capitalization (which is a calculation of share value multiplied by outstanding shares). This won’t change Majesco’s financial position other than allowing them to continue trading on the exchange.
[Source: Joystiq, Securities Exchange Commission]
Our Take
Reverse stock splits are cosmetic measures that are typically viewed by shareholders as the rock to delisting’s proverbial hard place. It didn’t work for THQ, and unless Majesco finds a way to inspire shareholder trust and raise the share price naturally, it likely won’t be more than a band-aid here.
I’d like to ask you to support Game Informer’s continued coverage of games with a subscription. For less than two dollars per issue, we mail you a full year of 10 print magazines, each with cover stories and preview features filled with exclusive details about the most exciting upcoming games. We profile and interview game creators. We look back on the rich history of gaming, and we celebrate what’s next.
Here on the website, we offer much of our content for free, including game reviews, daily news, videos, event coverage, and more – all with minimal ads.
We do so with a small editorial team, alongside contributing paid writers from around the world – over 65 individuals from 9 countries around the world, just in the last couple of years.
It’s not possible without support.
In a time when game makers and games coverage have faced hard struggles and layoffs, the future of this 30+ year magazine and community is at risk. Our new standalone magazine subscription is the number one way you can keep us alive – and we believe you’ll get a pretty fantastic gaming magazine in your mailbox every few weeks for your trouble.
Thank you.
