MoviePass's Parent Company (HMNY, $0.016) Wants To Issue Reverse Stock Split, Again
Movie subscription service MoviePass’s parent company Helios and Matheson wants to offer its shareholders a reverse stock split, for a second time this year.
In a reverse stock split, the issuing company reduces the number of outstanding shares without altering their total value (which means, price per share is raised by the firm). Executives at Helios and Matheson are seeking shareholder votes on a plan that would allow shareholders to trade in 500 shares for a single share worth 500-times as much.
If approved, the reverse stock split could increase Helios and Matheson stock price from less than 2 cents to as much as $10 — which would possibly be sufficient to allow the company to continue being listed on the Nasdaq stock exchange.
In July, the company executed a reverse stock split to boost its stock from 8 cents to $21; however, its market price dropped to less than a dollar within days.
Nasdaq has warned Helios and Matheson that it could be removed from the exchange if its stock price continues to remain low.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
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