Majesco Dodges Nasdaq Delisting
Majesco has been given another 180 days to get its stock price above $1.00.
Majesco got the heads-up back in March that it faced delisting from the Nasdaq stock market because of its sub-$1 share price. The Zumba Fitness publisher reported a small net loss for the final quarter of FY2012 as well as layoffs and an expectation of continued declining sales in 2013, a tough row that drove the company's share price down to little more than 50 cents at one point. That led the Nasdaq to warn that Majesco would be delisted if it didn't bring its price back up to at least $1 and keep it there for ten consecutive days.
The delisting deadline was August 28, but on August 29 Majesco revealed in a form 8-K filing that it had been given a 180 day extension, meaning that it has until February 24, 2014 to get its house in order. The company announced earlier this month that it will invest between $3.5 and $4.5 million in GMS Entertainment, a social and online casino gaming venture that it hopes will "supplement our existing business."
Majesco is currently trading at 64 cents.
They could always, I dunno, stop releasing shovelware and movie tie-ins? That may be a workable short-term business plan, but it does have a very negative effect on a company in the long run.