MoviePass' owner closed below $1 less than a week after it did a 1-for-250 reverse stock split to avoid being kicked off the Nasdaq (HMNY)
- MoviePass’ owner, Helios and Matheson Analytics, closed below $1 on Monday, less than a week after the company underwent a reverse stock split to boost its share price.
- The stock has plummeted from $14 on Wednesday, trading as low as $0.77 on Monday, days after MoviePass experienced a service outage and HMNY borrowed $5 million in cash to turn the app back on.
- Shares of HMNY have to close at $1 or above for 10 straight trading days for the stock to no longer be at risk of being delisted in mid-December.
- HMNY closed at $0.80 on Monday, putting it at risk of delisting.
MoviePass’ parent company, Helios and Matheson Analytics, closed below $1 on Monday, less than a week after the company underwent a reverse stock split in an attempt to stay listed on the Nasdaq.
HMNY was trading as low as $0.77 Monday before closing at $0.80 — a sharp drop from its $14 share price on Wednesday after performing a 1-for-250 reverse stock split on Tuesday.
The stock’s plummet comes as MoviePass faces dire prospects in its attempts to be financially sustainable.
The subscription service had an outage on Thursday after the company ran out of cash. Its service came back on Friday after HMNY borrowed $5 million in cash, which it disclosed in a Securities and Exchange Commission filing.
Many MoviePass users said over the weekend that they were having issues with checking in on the app and purchasing tickets on their card. Several also complained that the company was charging “surge prices” for films that had been out for weeks or were not showing at peak times.
Shares of HMNY would have to close at $1 or above for 10 straight trading days for the stock to no longer be at risk of being delisted from the Nasdaq, according to the exchange. It must also have a market cap of $50 million. (Its estimated market cap was about $1.35 million on Monday, according to Yahoo Finance.)
Since it closed at $0.80 on Monday, less than a week after its reverse stock split, HMNY is at risk of getting kicked off the exchange starting December 18.
Read the full article from it’s original source: http://uk.businessinsider.com/moviepass-owner-drops-below-1-could-face-delisting-from-nasdaq-2018-7