The owner of MoviePass tumbles to a new low
- Shares of MoviePass owner Helios & Matheson hit a record low on Monday.
- The company has issued a bunch of new shares in recent months, putting pressure on its stock.
- Watch HMNY trade in real time here.
MoviePass owner Helios & Matheson tumbled to a fresh low of $0.12 a share on Monday, down more than 18%.
Shares were trading at almost $2.50 apiece at the end of April, when the company said it had $15.5 million of cash on hand , but that a "$300 million equity line of credit" would keep it afloat through for 17 months.
Over the past 11 months, the company has been issuing a bunch of new shares in an effort to raise capital. Since August 15, the number of shares outstanding has exploded by 3,429% from 7 million to nearly 250 million at the end June.
The company has proposed a reverse stock split in an effort to boost its share price above the Nasdaq's minimum requirement of $1. The failure to reclaim that level would eventually lead to its delisting.
HMNY has lost 98.29% this year.