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Helios and Matheson shareholders back measures to ensure MoviePass owner stays listed on Nasdaq

Last updated: 16:18 23 Jul 2018 EDT, First published: 16:02 23 Jul 2018 EDT

Hollywood
The company received notice that it could be delisted from Nasdaq in June

Shareholders of Helios and Matheson Analytics Inc (NASDAQ:HMNY), the parent company behind the popular MoviePass subscription service, approved two measures Monday aimed at helping the company avoid being delisted by the Nasdaq stock exchange.

“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,” according to a report by Business Insider.

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 a 2-to-1 ratio, 250-to-1 ratio, or somewhere in between, at management's discretion.

READ: Shares of popular MoviePass owner rally after pricing secondary offering

Both measures are aimed at shoring up the company's flagging stock price. The stock closed 3.3% lower to US$0.09 Monday.

The company has 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 US$1.

It’s been a tremendous ride with big highs and lows for Helios & Matheson which was a sleepy data analytics company when it acquired MoviePass, a service with just 20,000 subscribers at the time. After slashing the MoviePass monthly fee to US$9.95 from up to US$50 a month, its subscriber base ballooned, crossing the three million mark in June.

The CEO has told reporters that the timeline for profitability is by the end of this year, when MoviePass hits around five million subscribers.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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