July 5, 2018
Helios and Matheson Analytics, parent of fiscally-challenged ticket subscription service MoviePass, is looking for shareholder redemption July 23.
That’s the date stockholders will vote on a series of proposals, including one that would authorize the board of directors to issue a reverse stock split as high as one share for every 250 shares of common stock.
With the stock down 3.6% to 21 cents in early July 5 morning trading, it would take combining five HMNY shares just to top Nasdaq’s mandatory $1-per-share minimum.
“If the board determines to implement the ‘reverse split amendment,’ [HMNY] would communicate to the public, prior to the effective time of the amendment, additional details regarding final reverse split ratio, as determined by the board,” HMNY said in the July 5 filing.
Indeed, HMNY needs to quickly shore up its fiscal optics. MoviePass is hemorrhaging millions of dollars more each month than it is generating enabling subscribers daily access to theatrical screening for $9.95 fee.
Another proposal would increase authorization of common shares from 500 million to 5 billion. HMNY currently has 498 million shares of stock authorized, including about 250 million shares of common stock outstanding.
HMNY said a nay vote by shareholders on the proposal could “unnecessarily” limit or delay its ability to pursue future financings, acquisitions and other transactions.
The company is also seeking approval of a “January Note Financing Proposal,” which would give it access to $35 million remaining from an original $60 million bond deal.
HMNY earlier this month announced a “mixed shelf” securities filing, which would allow it to sell $1.2 billion worth of securities over the next three years in various amounts and pricing.