Quick DD: HMNY is a $18m market cap microcap stock, an IT services company that's been around since 1983. They bought 51% of MoviePass for diluting 3.3m shares of HMNY, making HMNY's outstanding shares at 10m~. They have a earnout for hitting 100k subscribers, so MoviePass has less than 100k subscribers right now. If they hit 100k subscribers that is $12m revenue a year. $12m revenue * 51% / 10m shares outstanding is an EPS boost of $0.61. The current company's EPS as reported by TDA is ($3.86), so the parent company is still burning money.
It may be a better play to wait until MoviePass itself goes public, as right now this is a pretty risky play with the rest of HMNY's financials. Plus you don't have any control over when HMNY buys or sells MoviePass.
Link to the 8k here: http://ift.tt/2vBBkVG
On August 15, 2017 (the “Signing Date”), Helios and Matheson Analytics Inc., a Delaware corporation (“HMNY”), and MoviePass Inc., a privately held Delaware corporation (“MoviePass”), entered into a Securities Purchase Agreement (the “MoviePass SPA”), pursuant to which HMNY agreed to purchase shares of common stock of MoviePass (the “MoviePass Shares”) equal to fifty one percent (51%) of the then outstanding shares of MoviePass’ common stock (“MoviePass Common Stock”) for an aggregate purchase price of up to $27,000,000 (the “Maximum Purchase Price”), subject to the satisfaction or waiver of certain conditions set forth in the MoviePass SPA (the “MoviePass Transaction”). MoviePass is a subscription-based service that allows moviegoers to see a number of movies in movie theaters for a monthly fee.
Submitted August 15, 2017 at 03:37PM by IncendiaryGames http://ift.tt/2wO3o6I
