Reverse Stock Split didn’t help – MoviePass – Helios & Matheson Shares down 46% Monday
According to Yahoo Finance, MoviePass users experienced “technical” difficulties over the weekend and this may be disappointing news for investors. MoviePass owner Helios & Matheson (HMNY) shares are down 46% on Monday and trading for just $1.10 per share, after a reverse split last week sent them to $22.50.
MoviePass, Inc. is an American subscription-based movie ticketing service. Founded in 2011 and headquartered in New York City, the service allows subscribers to purchase a single movie ticket per day for a flat subscription fee per month, quarter, or year.
Last Wednesday, the struggling company’s shareholders approved a 1-for-250 reverse stock split in an effort to boost the share price over the NASDAQ’s minimum $1 requirement. Unfortunately, the reverse split did not help, and Helios & Matheson’s market cap didn’t make it past the $50 million mark. The following day, the company had to borrow $5 million to make certain payments.
HMNY shares are down more than 99% this year.
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