Helios and Matheson Analytics Inc’s (HMNY) Stock Offering Pressures the Stock

Helios and Matheson Analytics Inc (NASDAQ:HMNY) shares are under pressure on Tuesday, down nearly 30%, following the announcement of a dilutive equity offering.

Specifically, the data firm announced this morning that it will be selling 7,425,000 Series A-1 units and 11,675,000 Series B-1 units at a price of $5.50 per unit, a 31% below yesterday’s closing price.

Next up: Helios and Matheson: Here’s Why MoviePass Driving More Moviegoers into the Theater Means Good Things for the Industry »

Each Series A-1 Unit consisting of (i) one share of the Company’s common stock, par value $0.01 per share, and (ii) one Series A-1 Warrant to purchase one share of Common Stock.

Each Series B-1 Unit consisting of (i) one pre-funded Series B-1 Warrant to purchase one share of Common Stock and (ii) one Series A-1 Warrant.

The Warrants will be exercisable at any time on or after the issuance date until the five-year anniversary of the issuance date. Each Series A-1 Warrant will be exercisable at a price of $6.50 per share of common stock. Each Series B-1 Warrant will have an aggregate exercise price of $5.50 per share of common stock, all of which will be pre-funded except for a nominal exercise price of $0.001 per share of common stock.

On the other hand, these new shares won’t just raise the share count but they’ll also raise cash. HMNY expects the sale of these new shares to help shore up its balance sheet by generating approximately $105 million in new capital, before deducting underwriting discounts and commissions and estimated offering expenses payable by HMNY.

HMNY may use the net proceeds from this offering to increase the Company’s ownership stake in MoviePass or to support the operations of MoviePass and MoviePass Ventures; to satisfy a portion or all of the amounts payable in connection with previously issued convertible notes; and for general corporate purposes and transaction expenses. The Company may also use the proceeds to make other acquisitions.

The offering is expected to close on or about February 15, 2018, subject to customary closing conditions.


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