MoviePass Parent Cancels Special Shareholder Meeting Seeking Second Reverse Stock Split

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.


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