Helios and Matheson Analytics Inc (NASDAQ:HMNY) stock was falling hard today following an announcement for a share offering proposal.
Helios and Matheson Analytics Inc’s announcement is for the offering of 8,261,539 Series A units. These units will consist of one share of the company’s common stock, a Series A Warrant to purchase one share of common stock. It is also selling 969,230 Series B units that include one pre-funded Series B Warrants to purchase one share of HMNY stock.
Helios and Matheson Analytics Inc says that it will be selling the units in this offer for $6.50 each. It will be issuing the shares of HMNY stock and the warrants separately. It also points out that it is the sole seller for this offering.
According to Helios and Matheson Analytics Inc, the Series A Warrants will first be exercisable on the first day after the one year anniversary of their issuance. They will expire five years after this date. They are first exercisable with an exercise price of $7.25 per share. The Series B Warrants will be exercisable starting on the day of their issuance or the first day after. These warrants will expire after five years of issuance.
Helios and Matheson Analytics Inc says that it is expecting gross proceeds from this offer to reach $60 million. The company is planning to use funds from this offer to increase its stake in MoviePass or support its operations.
The public offering from Helios and Matheson Analytics Inc comes shortly after it announced a deal with Costco Wholesale Corporation (NASDAQ:COST). This deal has it selling one-year MoviePass subscriptions for $89.99.
Helios and Matheson Analytics Inc says that it is expecting the public offering to close on Dec. 15, 2017.
HMNY stock was down 31% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
