It looks like things are getting worse for Mad Catz, it looks like they are running the risk of being dropped from the New York Stock Exchange due to low share price. A formal notice was sent to the company on January 20th saying that the company must either consolidate shares or raise its share price over the next six months.
“Due to the company’s current low selling share price,” Mad Catz stated today in a letter to investors, “the company’s continued listing on the [NYSE] is contingent upon the company effecting a share consolidation or otherwise demonstrating a sustained improvement in its share price within the next six months.”
Back in 2015 the company announced that they would co-publish Rock Band 4 along with developer Harmonix. Several months after that announcement the company notified investors that its dependence on sales from Rock Band 4 raised “substantial doubt about the company’s ability to continue as a going concern.” The in early 2016 the company CEO resigned ahead of an annual earnings report. The next day, the company announced it would lay off 37 percent of its staff. It also sold off the Saitek brand to Logitech.
Mad Catz Interactive, Inc. is currently trading on the NYSE for around 15 cents per share.
The company is seeking to conduct a “reverse stock split,” which would effectively reduce the number of shares that are in the wild.
Sadly Mad Catz’ line of RAT gaming mice are some of the best we’ve used.
