We have entered into transactions similar to this transaction with the selling security holder in the past. Prior Senior Secured Convertible Note Transactions So from prior senior secured convertibles, HMNY has issued 5.062 million shares at roughly $4 per share (see the details below).Ĭheck this out in its S-3 filed on September 15, 2017 These two theater chains have theaters located in Arizona, California, Florida, Illinois, Michigan, Missouri, North Carolina, Pennsylvania, Indiana and Texas.ĭue to the amount of time and mental gymnastics it requires attempting to follow the dilution bouncing ball (I already have spent two to three hours on this dilution bouncing ball trail), I tried to summarize it and provide backup. In the other theater chain, during the Measurement Period, the number of theater seats filled by MoviePass increased from 203 to approximately 1,795, representing an increase of approximately 884% as compared to the seven day period preceding the Measurement Period. In one of the theater chains, during the Measurement Period, the number of theater seats filled by MoviePass increased from 206 to approximately 4,137, representing an increase in excess of 2,000% as compared to the seven day period preceding the Measurement Period. HMNY is providing this Current Report to disclose the performance of MoviePass in filling theater seats for two theater chains that have partnerships with MoviePass, for the six-day period from August 15, 2017, through Aug(the “Measurement Period”), following the announcement of the MoviePass Transaction and the new MoviePass $9.95 per month subscription price. This is in addition to the $25,000,000 base consideration to be paid by HMNY for a majority stake in MoviePass, subject to and in accordance with the conditions set forth in the MoviePass SPA.ī) On August 21st, HMNY filed this flashy 8-K ( see here) - Movie Theatre attendance has increased 2,000% at one movie theatre: (“MoviePass”) entered into a Securities Purchase Agreement (the “MoviePass SPA”), pursuant to which HMNY agreed to purchase a majority stake in MoviePass for an aggregate purchase price of up to $27,000,000 (the “MoviePass Transaction”).Īccordingly, HMNY expects that it will become obligated to issue the Helios Milestone Shares (as defined in the MoviePass SPA) upon the closing of the MoviePass Transaction, equal to 666,667 unregistered shares of HMNY’s common stock. (“HMNY”) on August 15, 2017, HMNY and MoviePass Inc. Here is the important timeline of events:Ī) On August 15th, HMNY filed this 8-K ( see here) - $27 million conditional deal to purchase 51% of MoviePass:Īs previously disclosed in the Current Report on Form 8-K filed by Helios and Matheson Analytics Inc. Through the period ending June 30, 2017, its accumulated deficit is $55 million!Īs you could work out from Mark Gomes' interview with Ted Fransworth, HMNY intentionally structured a complicated and conditional financing transaction with MoviePass for the right to acquire a 51% equity stake in the business for $27 million. ![]() ![]() On August 11th, Helios filed its 10-Q for the reporting period ending June 30, 2017.Īs you can see below, this company, if you can even call it a company did an impressive $1.14 million in quarterly revenues. If Goldman banks/endorses their IPO, the valuation implication for HMNY will surely be meaningful. My sources suggest that Goldman is now deeply involved with MoviePass. Somehow, I'm not surprised that Goldman Sachs is somewhat involved in this name, at least indirectly.įYI, Studio Movie Grill is “partnered with EFA Partners and Goldman Sachs who recently helped increase the company’s debt facility to $85 million.” At the end of 2016, Studio Movie Grill took an equity stake in MoviePass. Here is a quote from HMNY's CEO Ted Fransworth. Shares hit an intraday high, October 11th, of $38.86 on crazy volume.Īlso, as required reading, please read SA Contributor Mark Gomes' piece from September 22, 2017: MoviePass And Helios Executive Interview. My response was that this will end, very, very badly.īefore we dive into what HMNY does and how it losses money, keep in mind that its shares were trading at just $2.50, as recently as September 13, 2017. Given the risk to retail investors, I am compelled to share this.Ī Market Adventures reader asked me about the meteoric rise in shares of Helios and Matheson Analytics, Inc. ![]() This article originally appeared on my Market Adventures site, at 6:30 am.
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