"Trouble THQ" has it's becoming known in certain circles has played one of those clever stocks and shares moves that mean it's gone from having loads of shares at a low price to fewer shares at a higher price... in order to avoid delisting from the NASDAQ exchange.According to the company itself
, " The reverse stock split will reduce the number of shares outstanding from approximately 68.5 million shares to approximately 6.9 million. The reverse stock split will affect all issued and outstanding shares of common stock, as well as the shares issuable upon conversion of the company?s 5% Convertible Senior Notes, the common stock underlying stock options, warrants, restricted stock units, and other common stock-based equity grants outstanding immediately prior to the effectiveness of the reverse stock split. The number of authorized shares of the company?s common stock will not be affected by the reverse stock split."
Basically this - for the short term - will keep NASDAQ happy as the stocks will remain above its $1 threshold for delisting. It's certainly a tactic, just not one used by a company at the top of its game.