On Wednesday, according to a document Helios and Matheson filed Friday with the Securities and Exchange Commission, the Nasdaq warned the company it would suspend trading in its stock on December 28 and would move to delist it. The company repeatedly warned investors that Nasdaq had given it until this past Tuesday to get back into compliance. Thanks to Helios and Matheson's massive stock sales, its shares fell below that threshold in May and, with a brief respite after a reverse split in July, have stayed below it since. The Nasdaq requires that all listed companies and their stocks meet certain requirements, among them that they trade over $1 a share. It's kept afloat by issuing and selling billions of new shares to the public, in the process massively diluting its investor base - and sinking its stock price. In just the first nine months of this year, Helios and Matheson has burned through $321 million in cash from its operations alone, almost entirely due to MoviePass. MoviePass' $10-a-month subscription service, which initially excited investors and boosted the company's stock, proved to be a boondoggle. Helios and Matheson shareholders have already absorbed a bunch of bad news this year. Helios and Matheson has been trading below $1 a share Representatives of Helios and Matheson did not respond to an email seeking comment about the potential delisting. “The delisting itself is clearly bad news,” said James Angel, an associate professor of finance at Georgetown University’s McDonough School of Business. Worse, the company could find it difficult to raise new funds by selling additional shares – the chief way it’s kept itself in business this year amid mounting losses. If and when that happens, its stock could plunge even farther than it already has, and shareholders could have a tough time selling their shares.

The company’s stock is in danger of being delisted by the Nasdaq national market, potentially as soon as December 28. Helios and Matheson could delay the delisting by appealing it or getting a six-month extension to boost its stock.Īs bad as this year has been for shareholders of Helios and Matheson, the parent company of MoviePass, things could soon get even worse.That could lead the stock to fall even farther in value and could make it hard for investors and the company to sell shares.If Nasdaq delisted the stock, it would trade in the over-the-counter markets.The company has failed to meet a key listing standard – its shares have traded below $1 a share for most of the last seven months.MoviePass’s parent company, Helios and Matheson, is in danger of having its stock delisted by the Nasdaq within weeks.

Helios and matheson stock delisted