At a special meeting of THQ’s investors on June 29, 2012, the company received approval for a reverse stock split in the ratio of 1:10. This means that for every 10 shares held by an investor, at the opening of trading on July 9, 2012, they will own a single share. The value of that share will be ten times the value. The effective date of the split is July 5, 2012, at which time the share conversion will take place. Trading on the post-split adjusted price will not begin until the opening bell on July 9, 2012, though.

This measure was approved in an effort to emerge from NASDAQ’s delisting warning, which requires that the stock trade at $1.00 or greater for 10 consecutive business days by July 23, 2012. While there is no guarantee that this will be effective, the stock would have to drop approximately $5.00 per share over the period of July 9 through July 23. THQ’s stock (THQI) is currently trading at $.60 per share, a drop of $.02 from the opening of the market today.

The approval of the reverse split is no surprise. Had investors voted the measure down, it is exceedingly unlikely that a delisting would have been avoided. A reverse split affords the opportunity for recovery, despite its extremely negative connotation. This (legal) side-stepping of NASDAQ’s policy gives the publisher a new lease on life. Their long-term strategy of a core games focus now has enough road to pick up speed and carry the company forward to financial success… provided that those games in production (Darksiders II, WWE ’13, Company of Heroes 2, South Park: The Stick of Truth, and Metro: Last Light) all meet or exceed expectations.