The publisher of Psychonauts has been unable to keep its share price at one dollar on the Nasdaq stock market.
Majesco, publisher of memorable titles like Psychonauts and less memorable titles like Babysitting Mania, has struggled financially in recent years. After a rough fourth quarter 2012, the publisher reported layoffs earlier this year. The struggle continues for Majesco, as it is now in danger of being delisted from the Nasdaq stock market.
The publisher received a warning from Nasdaq due to the low price of its shares, which is currently 56 cents. Because of the ongoing low share price, Majesco “is not in compliance with the continued listing requirements for the Nasdaq Capital Market,” which requires the publisher “to have a minimum bid price of $1.00 per share for 30 consecutive trading days.” It now needs to get its share price back up to a dollar for at least ten consecutive business days by August 28, though if it misses that deadline it may receive another six-month grace period.
If this sounds familiar, it’s because Majesco went through the same thing in 2007, although that time it was because the publisher couldn’t “maintain a market capitalization above $35 million for 10 continuous days.” Six years ago, Majesco was quickly able to regain compliance, although it may not be able to repeat that in this case. Hopefully Majesco can right itself within the next five months, or we’ll never see that Babysitting Mania sequel we’ve been waiting for.
Published: Mar 8, 2013 02:05 pm