![]() ![]() This is based on a conversion price of $0.05, which may be further reduced if Helios and Matheson issues securities (such as its ATM offering) at a price lower than $0.05. The reason for this is that the conversion price on its convertible notes keeps getting lowered as Helios and Matheson issues stock at lower and lower prices.įurther, as of August 9, 2018, as a result of the issuance of convertible notes on each of the November 2017 Notes, the January 2018 Notes, and the June 2018 Convertible Notes, 1.3 billion shares of our common stock may be issuable upon conversion of such outstanding debt." Helios and Matheson's 10-Q also notes its outstanding convertible note debt may result in a massive amount of further dilution. While I had thought that Helios and Matheson could end up with hundreds of millions of shares by the end of August, the rate at which Helios and Matheson is adding shares has surprised even me. Helios and Matheson's share count has also increased over 370 times in under a month since its late-July reverse split (after which it had 1.7 million shares). The 636.9 million shares would have translated into 159.2 billion shares pre-reverse split, meaning that Helios and Matheson's share count has effectively increased by over 22,000 times since last August. It reported 636.9 million shares as of August 14th, up from 6.7 million shares on July 31. Helios and Matheson has been issuing, adding a staggering amount of shares. The continuing dilution severely limits the stock's upside even if Helios and Matheson beats the odds to survive long term and creates some value out of its subscriber base. Helios and Matheson's ( OTC:HMNY) Q2 2018 report shows that MoviePass has still retained most of its subscriber base so far but also that an amazing amount of dilution has occurred, with over 636 million shares reported (159.2 billion pre-split shares).
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