![]() Helios and Matheson shares are down another 50% today, and we'll likely see the losses get even worse until the financial situation is clarified. ![]() In the end, investors shouldn't try to catch a falling knife, especially one that has already reached terminal velocity. Also, is the board going to approve an increase in the amount of shares that can be issued moving forward if dilution would approach the maximum number allowed? First, how many shares are actually outstanding now, and how much money does the company need to continue operating for the next 3 months? That will give investors an idea of how many times over they will be diluted, unless of course we see some sort of bankruptcy announced because additional funds cannot be raised. Given the recent pattern, that price will be lost soon and won't be seen until the next reverse split.įor the near future, I don't see this downward spiral ending until we get a clearer picture of the overall situation. As the news link shows, the company may also receive a delisting notice if shares trade under $1.00. Unfortunately, the situation worsened over the weekend with the inability of customers to use the service for the latest Mission Impossible movie (no spoilers please!). That likely means substantial dilution is coming, and of course, we are still waiting for the company to report how much it lost in Q2. Unfortunately, it needs to repay the full value of $6.2 billion borrowed quite quickly, and it doesn't appear that the company currently has the money to do so. As I discussed late in the week, the company borrowed $5 million just to get its service back up after an outage because the company couldn't pay its bills. ![]() The stock underwent a massive reverse stock split, putting shares back above $20 but not for long. Last week was probably the worst week the company has seen yet, which is saying something given how much the stock has fallen in recent months. As you can see in the chart below, the stock is plunging basically every day now, further increasing the chances of another reverse split. Well, just a few days after I issued my latest warning to investors about the MoviePass owner, shares are down 50% again, falling below $1.00 in Monday afternoon trading. ![]() The company said it may use the net proceeds to increase its ownership stake in MoviePass “or to support the operations of MoviePass and MoviePass Ventures.” It also said it might use the expected funds to pay off debt, for “general corporate purposes and transaction expenses,” or to make other acquisitions.Stop me if you've heard this before: Shares of Helios and Matheson Analytics ( OTC:HMNY) are one of the day's biggest losers. In its announcement Thursday, Helios and Matheson said the offering of 10.5 million shares is expected to close on or about April 23, 2018. Meanwhile, on Wednesday, Helios and Matheson disclosed that an independent auditor had raised “substantial doubt” about MoviePass’s ability to continue operating as “a going concern.” HMNY reported a loss of $150.8 million in 2017, which it attributed to its acquisition of MoviePass in August 2017, on revenue of $10.4 million. HMNY had actually revealed the stock deal with Verizon on April 5, as part of Helios and Matheson’s acquisition of the Moviefone service from Verizon’s Oath unit. Earlier this week, HMNY stock rose more than 30% as investors latched on to Verizon’s disclosure of a 9.3% ownership stake in the company. ![]()
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