Reverse Stock Split Approved for THQ

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THQ Inc. on Monday said that shareholders approved a one-for-10 reverse share split of its common stock in an effort to avoid Nasdaq delisting.

The Agoura Hills video game maker, which has seen its stock price fall to as low as 45 cents in the last 52 weeks, was warned in January by the Nasdaq Global Select Market that it had until July 23 for shares to close above $1 for at least 10 consecutive trading days.

The reverse stock split will reduce the number of THQ shares outstanding from 68.5 million shares to 6.85 million, the company said. The split is expected to take place Thursday, with shares to start trading on a post-reverse split-adjusted basis next Monday.

The reverse split comes as the company, which reported a larger fiscal fourth quarter loss, continues to restructure itself to focus a smaller number of core games available on a wide variety of platforms.

Shares were down 3 cents, or 4 percent, to 60 cents in midday trading.

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