MoviePass Parent Sees Stock Surge
Helios and Matheson Analytics also said it is seeking a reverse split of its shares and if investors don't approve the plan it risks delisting from Nasdaq.
Shares of MoviePass parent Helios and Matheson Analytics on Tuesday spiked 27 percent to 45 cents per share. Meanwhile, after the closing bell, the company said it is seeking a reverse split of its shares and if investors don't approve the plan, it risks delisting from Nasdaq.
After the filing, in after-hours trading, all of the gains the stock made during the regular session faded away.
The company will set a special meeting to discuss the matter next month, but it said in an SEC filing on Tuesday that it believes a vote approving of a reverse split two years ago might be enough to act on the plan even without shareholder approval at the special meeting.
Helios said it may not conduct the reverse split if its situation changes, but Nasdaq requires that shares trade above $1 or it can delist the stock. A reverse split would raise the price by giving investors one share for several that they currently own.
The stock traded near $10 a share six months ago, but it has sunk as word spread that MoviePass was losing millions of dollars, given the company mostly pays full price for the tickets its subscribers use but it only charges them $10 a month, while they can use a ticket per day.