MoviePass’ parent company has canceled a long-delayed shareholders vote, as it tries desperately to stay on the Nasdaq

source
Hollis Johnson/Business Insider

  • MoviePass parent company, Helios & Matheson Analytics (HMNY), announced Tuesday that it had canceled a special shareholders meeting regarding a vote on a proposed 1-for-500 reverse stock split.
  • The meeting was postponed twice and then canceled because the company said it “does not expect to have the requisite stockholder votes to approve the proposed reverse stock split,” according to an SEC filing.
  • If the HMNY stock continues to trade below $1 after December 18, the Nasdaq could begin the process of delisting it.

MoviePass parent company, Helios & Matheson Analytics (HMNY), announced on Tuesday in an SEC filing that it had canceled a shareholders meeting regarding a crucial vote on a proposed 1-for-500 reverse stock split.

The meeting was originally scheduled for October 18, but two days before that date it was rescheduled to November 1. A day before that meeting was to take place, HMNY postponed the meeting once more to this Wednesday. Now, a day before the meeting, HMNY has canceled it.

Why? According to the filing, HMNY “does not expect to have the requisite stockholder votes to approve the proposed reverse stock split.”

HMNY wants to enact the split in order to try and get back into compliance with Nasdaq listing rules. But Business Insider talked to numerous investors over the past month who said they would not approve a reverse stock split, and some even took to social media to push a “no” vote.

HMNY is trying desperately to stay on the Nasdaq, as it creeps closer to a potential delisting. If the stock, which was trading at around $0.02 Tuesday, stays below $1 after December 18, the process for delisting could begin.

Read more: 18% of MoviePass subscribers say they plan to cancel, but many loyalists are still happy despite unpopular new features

HMNY notes that the company may be given a second 180-calendar day period to regain compliance. To qualify, it would have to meet the listing requirement for market value of publicly held shares and Nasdaq listing standards, except for the minimum bid price requirement.

“The Company would be required to notify the Nasdaq Stock Market LLC of its intent to cure the deficiency during the second compliance period, which may include, if necessary, implementing a reverse stock split,” the HMNY note says. “If the Company is afforded additional time to regain compliance (of which there can be no assurance), the Board plans to call a special meeting as soon as practicable with a new record date for the Company’s stockholders to vote on a reverse stock split in an effort to regain compliance.”

Even if HMNY gets approval for the reverse split, it might not help stabilize the stock. In August, HMNY’s 1-for-250 reverse stock split shot the stock up before it crashed back down below $1 again.

And if all this isn’t enough for the company, HMNY also has a New York Attorney General’s investigation hanging over its head.

Business Insider contacted HMNY for comment but did not get a response.