Helios and Matheson Analytics Inc. (OTCMKTS:HMNY) announced Friday that its board of directors has formed a strategic review committee to identify, review and explore all strategic and financial alternatives for the group.
In a statement, the firm said the committee - composed entirely of its independent directors – will look at options including a sale of the company in its entirety; a sale of substantially all of its assets including MoviePass, Moviefone and MoviePass Films; a business reorganization; or one or more other extraordinary corporate transactions, together with the assumption or settlement of the company’s liabilities in connection with any of these alternatives.
The company said there can be no assurance that the committee’s review process will result in any transaction.
In addition, Helios and Matheson said, on September 13, MoviePass notified its subscribers that it would be interrupting the service for all its subscribers - effective September 14 - because its efforts to recapitalize MoviePass have not been successful to date.
The company said it is unable to predict if or when the MoviePass service will continue.
The group pointed out that while it is continuing its efforts to seek financing to fund its operations, there can be no assurance that any such financing will be obtained or available on terms acceptable to the committee.
Helios and Matheson currently owns approximately 92% of the outstanding shares (excluding options and warrants) of MoviePass Inc.; 100% of the outstanding membership interests in MoviePass Ventures LLC; 51% of the outstanding membership interests in MoviePass Films LLC; and the Moviefone brand and service.
The New York City-headquartered company’s holdings also include Zone Technologies, Inc., creator of RedZone Map, a safety and navigation app for iOS and Android users.
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