MoviePass majority owner Helios & Matheson’s stock falls after company issues $164 million of convertible debt
Shares of Helios & Matheson Analytics Inc. are down 14% in Wednesday trading after the MoviePass majority owner said in a filing that it has issued $164 million in convertible debt as well as 20,500 shares of series A preferred stock. The company said these resulted in an “aggregate cash payment” to HMNY of $20.5 million. The convertible notes will mature in three years, unless they are converted or redeemed earlier. HMNY also said in the filing that it received a letter from the Nasdaq’s listing qualifications department last week stating that the company’s bid price has been below the $1 per share required to be listed on the Nasdaq. The company said this letter “has no immediate effect on the listing” of its stock, but that it has until mid-December to get back in compliance with the Nasdaq’s rule. If the company completes a reverse stock split, which it has sought shareholder approval for, the reverse split must take place no more than 10 business days before December 18. The stock is down 94% in the past 12 months, to 21 cents a share, while the S&P 500 has gained 4.9%.