informa
News

Mad Catz threatened with stock market delisting

Embattled game peripheral maker Mad Catz was told by the New York Stock Exchange (NYSE) last week that it must effect a "sustained improvement in its share price" within six months or be delisted.

Embattled game peripheral maker Mad Catz told the world today that it received a message from the New York Stock Exchange (NYSE) last week that it must effect a "sustained improvement in its share price" within six months or be delisted.

Such warnings often presage deep trouble for game companies (think: THQ, Midway, and Majesco, for example) but they don't always mean the end. Mad Catz representatives state the company will try to win shareholder approval for a reverse stock split at its upcoming annual shareholders meeting.  

Such a move could, by cutting down on the number of traded shares, potentially increase the company's share value enough to remain on the NYSE. At the time of publication, Mad Catz shares are valued at $0.15 apiece; that's a problem because, in order to be listed on the New York Stock Exchange, every company is required to maintain a minimum average closing price of $1.00 per share over 30 consecutive trading days.

Mad Catz appears to be in this situation because it had a rough 2016. Last year the company sold off its entire Saitek division for $13 million after reporting a full-year loss of $11 million and laying off ~37 percent of staff in a cost-cutting restructuring plan; these actions were attributed in part to unexpected shortcomings following Mad Catz's decision to co-publish (and make hardware for) Harmonix's 2015 game Rock Band 4.

Latest Jobs

Pocketwatch Games

Remote
01.05.22
Senior Gameplay Engineer

Disbelief

Cambridge, Massachusetts
01.07.22
Jr. Programmer

Gameloft Australia

Brisbane, Australia
01.06.21
Creative Director

Sucker Punch Productions

Bellevue, Washington
01.06.22
Senior Systems Designer
More Jobs   

CONNECT WITH US

Register for a
Subscribe to
Follow us

Game Developer Account

Game Developer Newsletter

@gamedevdotcom

Register for a

Game Developer Account

Gain full access to resources (events, white paper, webinars, reports, etc)
Single sign-on to all Informa products

Register
Subscribe to

Game Developer Newsletter

Get daily Game Developer top stories every morning straight into your inbox

Subscribe
Follow us

@gamedevdotcom

Follow us @gamedevdotcom to stay up-to-date with the latest news & insider information about events & more