MoviePass's mum or dad 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 mum or dad firm that it could transfer to delist its inventory as quickly as December 28.
  • Shares of Helios and Matheson have traded beneath $1 a share for practically the complete 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 does not suppose it is going to be in a position to ever do it.
  • Helios and Matheson plans to attraction the choice, which might delay and probably avert the delisting.

The mum or dad 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 Change Fee. The corporate plans to delay and probably head off the delisting by interesting the alternate’s choice.

However the firm’s probabilities of profitable an attraction 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 satisfy since Might of this 12 months. 

Helios and Matheson “obtained a written discover from [Nasdaq’s] workers 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 workers decided that it doesn’t seem that it’s potential for the corporate to remedy the deficiency,” the corporate mentioned in its regulatory submitting.

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

Learn this: MoviePass’ mum or dad firm simply purchased itself extra time to dwell, however it’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 choice. Appeals are usually held inside 45 days of their submitting, in keeping with the doc. Ought to Helios and Matheson not really attraction the delisting choice or lose its attraction, its shares would possible find yourself on the over-the-counter markets the place they might 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 12 months as its burned by way of greater than $300 million in money and bought 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, quickly boosting its inventory worth above $20 a share. However the shares rapidly plummeted beneath $1 a share once more as the corporate issued and bought large portions of recent shares to fund its ongoing losses. 

Helios and Matheson proposed reverse splitting its inventory once more this fall, however it ended up abandoning the hassle 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 keeping with the regulatory doc. 

SEE ALSO: MoviePass’ mum or dad firm has boosted its share depend by an unbelievable 80,000% since July — however it’s run out of room to problem new inventory

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