In press release, Helios and Matheson said that, at a special meeting of stockholders held on July 23, shareholders approved the one-time reverse stock split of its common stock, at a ratio of one share-for-two shares up to a ratio of one share-for-250 shares. Following the special meeting of stockholders, the Board of Directors approved the reverse stock split at a ratio of one-for-250. The stock started trading on the split-adjusted basis Wednesday (July 25).
“We believe this is an important step that will facilitate our access to capital over the next several years and enable us to implement our growth plans for MoviePass, MoviePass Films, and MoviePass Ventures, and will enable us to pursue potential acquisitions to grow our business,” said Ted Farnsworth, Chief Executive Officer and Chairman of Helios and Matheson in the press release. “With greater access to capital, we expect to solidify our position as the Number One movie theater subscription service in the U.S. and continue to revolutionize the movie industry.”
The stock split comes a few weeks after it announced it will sell up to $1.2 billion of equity and debt securities over the course of three years. In a press release at the time, Helios and Matheson announced it had filed a universal shelf-registration statement on Form S-3 with the U.S. Securities and Exchange Commission (SEC). The shelf registration will give the company the flexibility to finance growth, including for MoviePass, MoviePass Ventures, MoviePass Films and Moviefone.
In June, Helios and Matheson announced it was issuing $164 million in bonds and 20,500 shares of preferred stock. In a press release at the time, the company said the net proceeds from the offering and preferred stock would be used for general corporate purposes. The firm added that the notes would be convertible at a conversion price of $1, subject to adjustment. The preferred stock would not be convertible into common stock. Each share of preferred stock was entitled to 3,205 votes per share.