On Tuesday, March 26th, Helios and Matheson Analytics (OTC:HMNY) said it raised money in a new round of financing. The total came to $6 million. Despite having justifiable plans for the funds, HMNY stock dropped considerably on the market today.
Here’s what we know.
HMNY Stock Takes a Cold Plunge
According to sources, Helios and Matheson Analytics, which is the parent company of MoviePass and MoviePass Films, plans to use the raised $6 million to further product development. Specifically, this product development is for the MoviePass subscription business. More details on the financing round can be found here.
Speaking on the news, CEO Ted Farnsworth said the following: “Our long-term vision is for MoviePass to be the nation’s most popular movie-theatre ticketing platform.” Farnsworth also said Helios and Matheson, which owns 92% of the MoviePass’s outstanding shares, excluding warrants and options, plans to build “the infrastructure, data and tools” that will “power the next generation” of the movie-theatre subscription service.
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But the market didn’t bite at the news. Perhaps investors are still skeptical of the company, after all that happened last year. Remember when HMNY stock plunged 60% after customers couldn’t use their MoviePass credit cards? And then there was the whole thing in August 2018 when MoviePass Ups subscriptions were raised, which also didn’t sit well with the market.
Regardless, HMNY stock plunged on the news of the financing round. According to Yahoo Finance, Helios and Matheson closed Tuesday down 55.56%, making HMNY a trending ticker of the day.
Takeaway
What are your thoughts on Helios and Matheson? Can you understand why HMNY stock plunged like it did today? Let us know what you think in the comments below!
For Those Who Don’t Know
Helios and Matheson is a United States based company involved in the provision of information technology services. It serves several industries, from retail to healthcare.
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Featured image: Pixabay
