MoviePass's father or mother firm is in dire hazard of getting its inventory delisted by the Nasdaq (HMNY)

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PARK CITY, UT - JANUARY 20: CEO of MoviePass Mitch Lowe attends 'An Evening with Beverly Luff Linn' Dinner presented by MoviePass on January 20, 2018 in Park City, Utah.

  • The Nasdaq warned MoviePass’s father or mother firm that it might transfer to delist its inventory as quickly as December 28.
  • Shares of Helios and Matheson have traded beneath $1 a share for practically your entire time since Might, violating Nasdaq’s itemizing requirements.
  • The corporate had till Tuesday to spice up its inventory worth above that threshold, however failed, and the Nasdaq would not assume it will likely be in a position to ever do it.
  • Helios and Matheson plans to enchantment the choice, which might delay and presumably avert the delisting.

The father or mother firm of MoviePass could quickly not have its shares buying and selling on the Nasdaq market.

The Nasdaq warned Helios and Matheson on Wednesday that it plans to droop buying and selling within the firm’s shares on December 28 and can transfer to have them delisted, Helios and Matheson disclosed Friday in a doc filed with the Securities and Trade Fee. The corporate plans to delay and probably head off the delisting by interesting the change’s resolution.

However the firm’s probabilities of profitable an enchantment may very well be slim. The Nasdaq already determined that it will not give Helios and Matheson a 180-day extension to get its inventory again above $1 a share, the usual which it has failed to fulfill since Might of this yr. 

Helios and Matheson “obtained a written discover from [Nasdaq’s] employees that the corporate has not regained compliance with [Nasdaq’s listing standards] and isn’t eligible for a second 180-day interval as a result of the employees decided that it doesn’t seem that it’s doable for the corporate to treatment the deficiency,” the corporate stated in its regulatory submitting.

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The MoviePass proprietor indicated within the doc that it nonetheless believes it could enhance its inventory above $1 a share and regain compliance. It stated it might enchantment the choice and ask for a delay in order that it could reverse break up its inventory a second time. It additionally stated it might “proceed contemplating all out there choices to resolve the corporate’s noncompliance” with the itemizing commonplace.

Learn this: MoviePass’ father or mother firm simply purchased itself extra time to dwell, but it surely’s nonetheless in imminent hazard of being kicked off the inventory exchanges

Helios and Matheson’s inventory has been caught beneath $1 a share

Nasdaq’s guidelines require it to place the delisting course of on maintain when an organization appeals the delisting resolution. Appeals are usually held inside 45 days of their submitting, in line with the doc. Ought to Helios and Matheson not really enchantment the delisting resolution or lose its enchantment, its shares would possible find yourself on the over-the-counter markets the place they’d be harder to commerce and would possible decline even additional than they have already got. The corporate’s inventory has misplaced greater than 99% of its worth this yr as its burned by means of greater than $300 million in money and offered off billions of shares to remain in enterprise.

In June, after Helios and Matheson’s inventory had been beneath $1 a share for greater than a month, the Nasdaq despatched the corporate a letter warning that it was not in compliance with the market’s itemizing requirements. Nasdaq gave Helios and Matheson 180 days to spice up its share worth and remedy the issue.

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After getting approval from shareholders, it reverse break up its inventory by a 250-to-1 ratio in July, briefly boosting its inventory worth above $20 a share. However the shares rapidly plummeted beneath $1 a share once more as the corporate issued and offered huge portions of latest shares to fund its ongoing losses. 

Helios and Matheson proposed reverse splitting its inventory once more this fall, but it surely ended up abandoning the trouble within the face of widespread investor opposition. 

The Nasdaq cited that historical past in explaining why it would not give Helios and Matheson a second 180-day interval to get again in compliance with its itemizing requirements, in line with the regulatory doc. 

SEE ALSO: MoviePass’ father or mother firm has boosted its share rely by an unbelievable 80,000% since July — but it surely’s run out of room to challenge new inventory

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