The well documented financial perils of former FGC sponsors Mad Catz continue as the company was removed from the New York Stock Exchange (“NYSE”) on Friday.
The company’s delisting comes as no real surprise after they released this statement at the end of January which read as follows: “due to the Company’s current low selling share price, the Company’s continued listing on the NYSE MKT is contingent upon the Company effecting a share consolidation or otherwise demonstrating a sustained improvement in its share price within the next six months.”
With the share price falling to just $0.04 on Friday, the company was officially delisted from the NYSE as a result of “an abnormally low trading price”. It comes after a series of budget cuts, executive departures and redundancies over the last year that have underlined the poor financial performance of the company.
The company was well known in the FGC community for tournament sponsorship as well as sponsoring players. Most notably, they once sponsored professional players: Daigo Umehara, Tokido Kaniguchi and Kenryo Hayashi.
The company is also known for its third-party controllers, headsets and peripherals. The lacklustre performance of Rock Band 4, a game co-published by Mad Catz has been blamed for a significant portion of the company’s financial perils.
With the company now facing huge financial uncertainty having been removed from the Stock Exchange, it’s likely that new investment is necessary to save what is evidently an ailing company. Should there be no such investment the next announcement we see could well be the end of Mad Catz.
Esports Insider says: It’s a shame to see a business that was once well entrenched in the FGC esports scene disappear. Luckily the departure of Mad Catz doesn’t seem to have effected the FGC community or scene too much as it continues to blossom. Long may it continue.