Mad Catz have failed to claw their way back to prosperity and have now been delisted from the New York Stock Exchange, meaning their shares can no longer be traded.
As previously reported, the peripheral manufacture was, two months ago, issued with notice that unless their financial performance improved, their shares would be delisted from the New York Stock Exchange. Having failed to improve financially, the NYSE have made good on their threat.
In response to the delisting, Mad Catz issued a statement explaining that:
“The Company does not intend to appeal the delisting determination. The Company’s common stock will begin trading on the OTC PINK marketplace on March 23, 2017, under the symbol “MCZAF.” The transition to the over-the-counter markets will not affect the Company’s business operations.”
This, in essence, means that Mad Catz can continue to function, though its current status is likely matter of grave concern to staff and shareholders alike. Delisting does not necessarily mean that the company is doomed, though relatively few companies have recovered from this move.
The company has been a fixture of the game industry for over thirty years, creating and distributing all manner of controllers and other peripherals. Though its profitability and share price have been in decline for some time, hence the NYSE’s warning and subsequent delisting.
It would be a shame to see the company go under, but if they cannot turn things around then bankruptcy may the only remaining option.