January 16, 2019
Fiscally-challenged Helios and Matheson Analytics, parent of theatrical ticket subscription service MoviePass, Jan. 16 announced it has entered into definitive agreements with certain institutional investors for the purchase of 333,333,334 common units for gross proceeds of about $5.4 million.
Each unit includes one share of common stock, one warrant to purchase one share of common stock at a price of 1.63 pennies per share, one warrant to purchase another share of common stock at the same price, and one warrant to purchase one share of common stock at $1 per share.
The potential gross proceeds from the warrants, if fully exercised on a cash basis, will be about $344.2 million.
HMNY said it would use the $5.4 million for working capital purposes; to redeem about $1.2 million of an outstanding debt offering; and to pay certain fees due to the placement agent and other transaction expenses.
Indeed, with its stock worth less than 2 cents per share, HMNY is in danger of being delisted by Nasdaq for failing to meet the minimum $1 per share threshold. The trading board has given HMNY until April to meet the minimum.