MoviePass majority owner Helios & Matheson's stock slides after company says it will issue $164 mln in convertible notes

06/21/18 09:20 AM EDT

Shares of Helios & Matheson Analytics Inc. (HMNY) are down 2.4% in premarket trading after the company, which is the majority owner of MoviePass, said it has entered into an agreement to issue $164 million in convertible notes. HMNY will also issue 20,500 shares of preferred stock. The proceeds will go toward "general corporate purposes," the company said in a release. The notes will be convertible at a price of $1, while the preferred stock won't be convertible to common stock. Shares of HMNY plunged in Wednesday's session after the company said it was seeking approval (http://www.marketwatch.com/story/moviepass-majority-owner-helios-mathesons-stock-tumbles-after-company-expresses-interest-in-reverse-split-2018-06-20) to do a reverse stock split. The stock is down 88% over the past 12 months, while the S&P 500 has gained 14%.

-Emily Bary; 415-439-6400; AskNewswires@dowjones.com

 

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06-21-18 0920ET

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