November 13, 2018
Helios and Matheson Analytics shareholders have been to this rodeo before.
The corporate parent to fiscally challenged ticket subscription service MoviePass Nov. 13 disclosed that a planned special shareholder meeting regarding a proposed second reverse-stock split has been canceled due to a lack of requisite stockholder votes.
The meeting, previously scheduled for Oct. 18 and then delayed to Nov. 14, had sought to gain approval for 1-for-500 shares reverse-stock split. With shares currently hovering around 1.7 cents per share – 98.3 cents below the mandated $1 per share Nasdaq minimum – HMNY sought to artificially prop up the stock to meet compliance.
Shareholders were perhaps skeptical considering less than six months ago HMNY received approval for a 1-for-250 shares reverse-stock split.
While the split briefly resulted in stock reaching $22.50 per share, in less than five days the stock had again fallen below the $1 minimum – and continued to fall.
Nasdaq has stipulated HMNY has until Dec. 18 to meet compliance. HMNY, in a regulatory filing, said it hopes Nasdaq affords it a second 180-calendar day period to regain compliance.
To qualify for the extension, HMNY would have to demonstrate a realistic path toward elevating the stock price – a strategy it (incredulously) says would likely depend on another reverse-stock split.
The other strategy apparently involves appeals and denial.
“If the company does not regain compliance and is either not eligible for an additional compliance period … the company may appeal the delisting,” it wrote.
Indeed, HMNY would remain listed pending Nasdaq appeals panel’s decision.