hot  /  reviews  /  video  /  blogs  /  forum

A trick prevents Majesco stock from being delisted

2:00 PM on 07.05.2014 // Kyle MacGregor
  @DtoidKyle

Reverse split saves Cooking Mama publisher's bacon

Majesco is no longer in danger of being delisted from the NASDAQ stock exchange, thanks to some clever accounting. The Cooking Mama and Zumba Fitness publisher pulled off a reverse stock split last month, reducing its outstanding shares by a factor of seven.

NASDAQ requires companies to maintain a minimum bid price of $1 per share, a threshold Majesco fell below in January 2013. After a couple lengthy grace periods, Majesco finally managed to get its head above water, closing trading this week at $2.42.

Though individual shares may be selling at a higher price, reverse splits do not create value for investors. A book of Majesco shares is still worth the same amount; there's just less individual units to go around. This type of move really only delays the inevitable, affording a struggling business time to try digging itself out of a hole.

Majesco is presently betting the farm on a new online casino business and its indie publishing label Midnight City, distributors of Costume Quest 2, BloodRayne Betrayal, and High Strangeness.


 Reblog (or) Blog Reply



Kyle MacGregor, Associate Editor
 Follow Blog + disclosure DtoidKyle Tips
Kyle has called Destructoid home for donkey's years, starting out in the Cblogs as a Nintendo Wii apologist before eventually, somehow winding up as its resident JRPG zealot. Living the dream... more   |   staff directory

Get more destructoid:   We're indie-run, blogging for the love of it, and our site will always be free. Optionally, you can support us and get: (1) Faster pages from our cloud server (3) Wide(r)screen (3) No big ads on Dtoid, Japanator, Tomopop, or Flixist (4) Auto contest entries, and (5) Dibs on betas & downloads. Try it out

 Setup email comments

Unsavory comments? Please report harassment, spam, and hate speech to our moderators, and flag the user (we will ban users dishing bad karma). Can't see comments? Apps like Avast or browser extensions can cause it. You can fix it by adding *.disqus.com to your whitelists.
advertisement:




Back to Top


  Light Theme      Dark Theme
What is the meaning of life, and do you have any more pizza rolls?
You may remix all content on this site under Creative Commons with Attribution
- Living the dream, Since 2006 -