Why Helios and Matheson Analytics Is Crashing
Helios Mathseson Analytics saw its shares pull back massively on Thursday after the company said it will be conducting a secondary offering to raise funds.
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Helios and Matheson Analytics Inc. (NASDAQ: HMNY) saw its shares pull back massively on Thursday after the firm issued an update. The company will be conducting a secondary offering to raise funds. Although stocks are expected to pull back on the announcement of a secondary, this move is absolutely ridiculous.
Canaccord Genuity is acting as the sole bookrunner and underwriter for this offering.
The company has yet to release the terms for the offering or what is even valued.
Helios may use the net proceeds from this offering to increase the firm’s ownership stake in MoviePass or to support the operations of MoviePass and MoviePass Ventures.
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This may also be to satisfy a portion or all of any amounts payable in connection with previously issued convertible notes, as well as for general corporate purposes and transaction expenses. The firm also may use the proceeds to make other acquisitions.
Excluding Thursday’s move, Helios had outperformed the broad markets with its stock up 46% in the past 52 weeks. However in 2018 alone, the stock was down 39%.
Shares of Helios and Matheson Analytics were last seen down over 41% at $2.24. The stock has a $15.50 consensus analyst price target and a 52-week trading range of $2.12 to $38.86.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
