Update March 31, 2017: Just a few days ago MadCatz, creators of third-party gaming peripherals, were delisted from the New York Stock Exchange due to an “abnormally low” share price. It seems that news was the death knell of the California-based company, as they’ve now filed for bankruptcy.
From yesterday, the company ceased operations and the entire board of directors resigned, as reported by Nasdaq.
We’re sorry to see them go. Dave rates the RAT 8 as one of the best gaming mice on the market.
Following a period of decline, in which MadCatz were looking to sell the company, the only option left to the board of directors was to make a voluntary assignment in bankruptcy. No third-party stepped in to make an offer, and the company’s lenders stopped granting funds.
“Regrettably and notwithstanding that for a significant amount of time the company has been actively pursuing its strategic alternatives, including various near term financing alternatives such as bank financing and equity infusions, as well as potential sales of certain assets of the company or a sale of the company in its entirety, the company has been unable to find a satisfactory solution to its cash liquidity problems,” said president and chief executive officer Karen McGinnis.
“The board of directors and management would like to acknowledge the outstanding efforts of the company’s employees in support of its business, especially during the time that the company faced financial difficulties. The company would also like to thank the vendors and professional service providers who have supported the company’s efforts during this time.”
Original Story March 27, 2017: Peripherals makers Mad Catz have been forcibly delisted from the New York Stock Exchange due to their “abnormally low” share price.
Mad Catz have been struggling for a while now. Early last year, some of their topexecutives resigned and 37% of their staff were laid off after sales of Rock Band 4 were lower than expected.
After striking a deal to co-publish and supply peripherals for Rock Band 4, Mad Catz had pinned their hopes on the game to rescue their business from the suggestion that they were in serious trouble.
The New York Stock Exchange issued a delisting warning in January this year, to which Mad Catz responded by saying they would consider a reverse stock split (amalgamating shares to increase their price). Their stock price at the time was just $0.15 per share. Trading in Mad Catz was suspended late last week, with share prices having slumped to $0.04. Mad Catz have indicated they will not appeal the NYSE’s decision to delist them.
This isn’t necessarily the end for Mad Catz, but something drastic – like a major new investor – will probably need to happen to keep them from bankruptcy.
Thanks, Bit-tech.