MoviePass/Reuters
MoviePass CEO Mitch Lowe and Helios and Matheson Chief Executive Ted Farnsworth
- Helios & Matheson investors - which own 92% of MoviePass - approved two measures designed to help the company avoid delisting on Monday.
- Shareholders approved the possibility of issuing 4.5 billion new shares, as well as a possible reverse stock split.
- The stock has fallen dramatically in the past year, and now trades 99% off its high record high near $40.
- Follow HMNY's stock price in real-time here.
Shareholders of Helios & Matheson - the parent company of MoviePass - on Monday approved two measures aimed at helping the company avoid being delisted by the Nasdaq stock exchange.
The vote came at a special meeting of shareholders designed to deal with HMNY's sinking share prince. The stock has witnessed a dramatic decline from its high of $38.52 less than a year ago to a record low of $0.09 on Monday morning.
The first approval was an authorization to increase the number of outstanding shares by a magnitude of ten, from 500 million to five billion, which would allow the company to sell more shares to the public or institutional investors.
The second -which chief executive Ted Farnsworth described as an "insurance policy" if the first was not passed - was the approval of a reverse stock split that could reduce the number of shares by anywhere from 2-to-1 to 250-to-1, at management's discretion. Both measures, the company said, could help shore up the company's stock price.
Official results are expected to be filed with the Securities and Exchange Commission later Monday.
When asked by a disgruntled investor for more clarity on the measures, executives present at the meeting Monday provided no details on timing of the reverse split or by what ratio shares may be consolidated.
HMNY first received notice that it could be delisted from the Nasdaq in June, after failing to maintain a share price above the minimum $1.
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