The owner of MoviePass just hit another new low

Business Insider

MoviePass owner Helios & Matheson (HMNY) is falling further into the abyss.

Shares are down about 25% on Wednesday, and trading at a record low of $US0.19 apiece. Wednesday’s losses mark the fourth straight day of declines.

Last week, Helios & Matheson proposed a reversed stock split in an effort to boost its share price above the Nasdaq’s minimum requirement of $US1. The failure to reclaim that level would eventually lead to its delisting.

HMNY announced in a regulatory filing out last Tuesday evening that it will have a special shareholder meeting in July to vote on four proposals that are intended to satisfy the Nasdaq’s requirements. “The failure of stockholders to approve this Proposal 3 could have serious adverse effects on the Company and its stockholders,” HMNY said in the proposal. Shares tumbled more than 30% on the news of the proposed reverse split.

HMNY, which burned $US40 million of cash in May has said its $US300 million “equity line of credit” can keep the company afloat well into next year.

The stock is down 97.43% this year.

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