- Investors in Helios and Matheson – which own 92% of MoviePass – approved two measures on Monday designed to help the company avoid delisting.
- Shareholders approved the possibilities of issuing 4.5 billion new shares or of carrying out a reverse stock split, which can be exercised independently at management’s discretion.
- The stock has fallen dramatically in the past year, now trading 99% off its record high near $US40.
- Follow HMNY’s stock price in real-time here.
Shareholders of Helios and Matheson – the parent company of MoviePass – on Monday approved two measures aimed at helping the company avoid being delisted by the Nasdaq stock exchange.
The vote came at a special meeting of shareholders designed to deal with Helios and Matheson’s sinking share prince. The stock has witnessed a dramatic decline from its high of $US38.52 less than a year ago to a record low of $US0.09 on Monday morning.
The first approval was an authorization to increase the number of outstanding shares by a magnitude of 10, to 5 billion from 500 million, which would allow the company to sell more shares to the public or institutional investors.
The second – which Helios and Matheson CEO Ted Farnsworth described as an “insurance policy” if the first were not passed – was the approval of a reverse stock split that could reduce the number of shares by 2 to 1, 250 to 1, or somewhere in between at management’s discretion. Both measures, the company said, could help shore up the company’s stock price.
Official results are expected to be filed with the Securities and Exchange Commission within four days, as required by the agency’s regulations.
When asked by a disgruntled investor for more clarity on the measures, executives present at the meeting Monday provided no details on timing of the reverse split or by what ratio shares may be consolidated.
Helios and Matheson first received notice that it could be delisted from the Nasdaq in June, after failing to maintain a share price above the minimum $US1.
Business Insider Emails & Alerts
Site highlights each day to your inbox.