Financially ailing gaming peripherals maker Mad Catz' problems may be coming to a head, with the company becoming involuntarily delisted from the New York Stock Exchange (NYSE) for its abnormally low share price.
Best known for third-party console controllers, PC gaming peripherals, and its decision to pay to pull out of the Guitar Hero contract, Mad Catz has been struggling of late. Its Project Mojo microconsole was not a great success, despite updates which brought Nvidia GameStream and Ultra HD media playback support to the device, and in July 2015 the company was forced to defend itself against accusations of serious financial difficulties with the claim that its deal to build the peripherals for Rock Band 4 would secure its future.
Sadly, that doesn't appear to have been the case. In February 2016 Mad Catz' top executives resigned ahead of a below-expectations earnings report which revealed a whopping £8.81 million annual loss and a plan to sack 37 percent of its workforce, and in September that year the company was forced to sell its Saitek division to Logitech for £9.8 million in order to keep the lights on - a deal which appears to have failed to secure investor confidence.
Now, the New York Stock Exchange is delisting the company's stock following its dropping to 'an abnormally low trading price,' under the NYSE Market Company Guide Section 1003 and suspending trading in its common stock - shifting it instead to the Over-The-Counter (OTC) Pink open market. While this isn't necessarily the end for the company, it's far from a good sign - and could be followed by bankruptcy proceedings unless Mad Catz can find an investor to shore the company up.
The company's share price dropped to $0.04 before trading was suspended, down from $0.06. The company has indicated it does not intend to appeal the NYSE's delisting decision.
UPDATE 2017-03-31:
Mad Catz has officially filed for voluntary bankruptcy; the company's assets are to be liquidated to pay its creditors. Rest in peace, Mad Catz.
Best known for third-party console controllers, PC gaming peripherals, and its decision to pay to pull out of the Guitar Hero contract, Mad Catz has been struggling of late. Its Project Mojo microconsole was not a great success, despite updates which brought Nvidia GameStream and Ultra HD media playback support to the device, and in July 2015 the company was forced to defend itself against accusations of serious financial difficulties with the claim that its deal to build the peripherals for Rock Band 4 would secure its future.
Sadly, that doesn't appear to have been the case. In February 2016 Mad Catz' top executives resigned ahead of a below-expectations earnings report which revealed a whopping £8.81 million annual loss and a plan to sack 37 percent of its workforce, and in September that year the company was forced to sell its Saitek division to Logitech for £9.8 million in order to keep the lights on - a deal which appears to have failed to secure investor confidence.
Now, the New York Stock Exchange is delisting the company's stock following its dropping to 'an abnormally low trading price,' under the NYSE Market Company Guide Section 1003 and suspending trading in its common stock - shifting it instead to the Over-The-Counter (OTC) Pink open market. While this isn't necessarily the end for the company, it's far from a good sign - and could be followed by bankruptcy proceedings unless Mad Catz can find an investor to shore the company up.
The company's share price dropped to $0.04 before trading was suspended, down from $0.06. The company has indicated it does not intend to appeal the NYSE's delisting decision.
UPDATE 2017-03-31:
Mad Catz has officially filed for voluntary bankruptcy; the company's assets are to be liquidated to pay its creditors. Rest in peace, Mad Catz.
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