Report: Majesco’s Future Darkens As Company Downsizes
In November, news of financial trouble at Majesco re-emerged. The publisher has dodged a number of bullets over the years, but recently expressed doubt of its ability to remain a “going concern.”
With no “significant new games” planned for 2015, the publisher has downsized according to a former employee of Majesco’s Midnight City indie label. Former vice president of publishing, Casey Lynch, shared via Twitter that he is no longer with the company due to layoffs. An email to his colleague John Kopp, communications director at the indie label, reveals via auto-reply that he is also no longer with the company.
Earlier this year, Majesco’s investors authorized a reverse stock split. This maneuver reduces the number of outstanding shares by a fixed ratio, increasing the value of each one remaining. The move prevented the publisher from NASDAQ delisting, a threat it had been under three times since 2008.
Majesco’s stock is $0.68 per share at the time of publication, well below the $1.00 minimum required by NASDAQ. It has been below the viability threshold since November 12.
The reverse split tactic was used by THQ in mid-2012 as a last ditch effort to avoid its own delisting. The company dissolved less than a year later.
We’ve reached out to Majesco for more information about the status of the company and the impact to Midnight City’s operations. We will update should we receive a response. At the time of publication,
[Source: Casey Lynch on Twitter]
Majesco’s luck has been centered on the right titles at crucial moments. With no major titles planned, it’s hard to see a way out that doesn’t involve bankruptcy or sell-off. Our thoughts go out to those affected.