Another Wall Street Analyst Just Dumped Helios and Matheson (HMNY)
Effective immediately, Maxim analyst Allen Klee is suspending coverage of Helios and Matheson (NASDAQ:HMNY) due to recent information that raises questions about the ability of HMNY to raise enough capital to continue as a going concern. Her most recent rating was Hold, which is no longer in effect and should not be relied upon. (To watch Klee’s track record, click here)
Specifically, on July 27th, the company issued an 8-K, in which it disclosed it raised $5.0 million in cash for which a combined $6.2 million would be paid back on August 1st and August 5th, 2018. The $5.0 million in cash received was to be used to pay the company’s merchant and fulfillment processors. Any proceeds from the company’s at-the-market stock sale program were to pay this note back first. HMNY also noted that service was interrupted on July 26th due to the company’s inability to make required payments to its merchant and fulfillment processors. The company disclosed on July 13th that it had a cash deficit of $45 million for the month of June and expected at least another $45 million deficit for July.
Read more: Helios and Matheson Fallout: Stock Crashes as Wall Street Debates Future
Helios and Matheson is a provider of information technology services and solutions, offering a range of technology platforms focusing on big data, artificial intelligence, business intelligence, social listening, and consumer-centric technology. HMNY owns approximately 92% of the outstanding shares (excluding options and warrants) of MoviePass, the nation’s premier movie-theater subscription service. HMNY’s holdings include RedZone Map™, a safety and navigation app for iOS and Android users, and a community-based ecosystem that features a socially empowered safety map app that enhances mobile GPS navigation using advanced proprietary technology.