As MoviePass investors rage against management, its parent company has delayed a crucial shareholders meeting
- MoviePass' parent company, Helios and Matheson Analytics, has postponed its special meeting of stockholders regarding the vote on a 1-for-500 reverse stock split to November 1.
- The meeting was originally scheduled for Thursday.
- MoviePass investors have voiced their displeasure with Helios and Matheson about the proposed reverse split on Twitter.
MoviePass' owner, Helios and Matheson Analytics, announced in an SEC filing on Tuesday that it was postponing the special meeting of stockholders regarding the vote on a proposed 1-for-500 reverse stock split.
Originally scheduled for Thursday, it will now take place two weeks later on November 1.
Helios and Matheson (HMNY) stated in the SEC proxy that the reason for the delay was so "our stockholders have more time to consider and vote upon the proposed reverse stock split."
HMNY stock was trading at around $0.02 on Tuesday.
In September, HMNY announced the special stockholders meeting to approve an amendment for a one-time reverse stock split of up to 1-for-500 shares. Then yesterday, two independent proxy advisory firms - Institutional Shareholder Services Inc. and Glass, Lewis & Co., LLC - both recommended that stockholders vote "for" the proposed reverse split.
But that doesn't seem to be giving investors much confidence.
Business Insider spoke to one early investor of MoviePass this week who said they were not planning to attend the originally scheduled meeting, saying plainly "it doesn't look like I'll ever make money from HMNY."
Meanwhile, stockholders have taken to social media to voice their frustration towards HMNY, including some pushing for a "no" vote:
The 1-for-500 reverse split is the latest attempt by HMNY to revive the stock, which if it continues trading below $1 could be delisted from the Nasdaq by mid-December. If that were to happen, it would make things even more challenging for the cash-strapped company.
In August, HMNY's 1-for-250 reverse stock split shot the stock up before it crashed back down below $1 again. So historically speaking, reverse splits for HMNY have not helped its stock.
Business Insider contacted HMNY for comment but did not get an immediate response.