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Is the Game Over for MoviePass?
- throwaway2048 8y agoA reverse stock split on Wednesday of the owning company of Movie pass at a ratio of 250 to 1, in other words on Tuesday you would have had 1000 shares and then on Wednesday it was all converted to 4 shares. However, at 9cents per share, assuming you had 250 share the value of your share would be $22.50.... after this reverse split the value fell to $14 a share or using the pre-split price it went from 9cents to 5.6 cents per share on Wed. On Thursday it went from $14 to $6.83. Today (Friday)the stock opened at $6. At 10:30am on Friday it is now $3.47 a share. It is on an express elevator to the basement. They are currently trading at $2.88....now at the close on Friday it is $2 a share or worth 0.8cents a share. To make this even more of a train wreck, at the special investor meeting this week the investors authorized the company to take two actions, 1.) to do the reverse stock split between 2:1 to 250:1 and 2.) to issue more shares for sale. Currently HMNY has 500 million outstanding shares. The company is now authorized to issue 5 BILLION more shares....talk about share dilution. I doubt they will survive much beyond next week when their short term financing they got last night is due to be paid. from https://www.reddit.com/r/movies/comments/92cvln/moviepass_no_longer_has_any_funds/e34qhns/ https://www.reddit.com/r/movies/comments/92cvln/moviepass_no...
- snowpanda 8y ago>What’s concerning investors is that every additional subscriber for the company adds to the loss, since MoviePass pays the theater the full ticket amount. How is this just now becoming a concern? Was that a secret before?