RedZone has seen a decline in popularity. It is a free app available in the Apple and Google stores. *RedZone, a thus-far revenue-devoid GPS app to alert drivers to crime areas to avoid. The mystery is why would HMNY acquire this unprofitable company in a business completely unrelated to the below recent HMNY ventures? Companies find themselves bogged down with unexpected expenses and difficulties folding in different operations.Īnd the MoviePass acquisition –a 51% stake for $27 million primarily through issuing stock and a note - in August is a particularly worrisome purchase. Rolling up companies is risky business which we’ve seen over the years hurt many shareholders. The company needed to file the stock registration for conversion so HMNY could finance its most recent acquisition … MoviePass. The potential watering down of shares is partially due to HMNY’s rollup fever… This effort is for selling stockholders.Īt best, the company would receive around $6 million if warrants are exercised, but the bulk of the offering – 6.7 million shares or nearly $18 million will go to selling shareholders. The company filed registration earlier this month for the resale of 9.08 million shares at prices ranging from $2.675 to $3.25. At the end of June, HMNY raised around $15 million, grabbing $9.1 million in proceeds along the way.įurther dilution appears to be ahead. HMNY’s apparent mission? Casual destruction of shareholders’ value.Ĭonvertible notes have financed operations and acquisitions for the past year. Regardless, the inability to make money – and we don’t believe it will ever be profitable - has forced HMNY to hurt shareholders, as shown below … Later, in the unlikely event the stock holds, we will delve into the company's top financiers which have been known to back losers. Investors endured a stunning $-1.97 loss in June: “In management's opinion, there is substantial doubt about the Company’s ability to continue as a going concern through one year after the issuance of the accompanying financial statements.” Here’s how dire the situation was, in management’s opinion: At the end of June, HMNY had just $1.4 million in available cash. HMNY has been running on fumes … $54.98 million in the red. The stock has rocketed by 90% and is now TheStreetSweeper sees a riskier investment than ever: The New York company merged with Zone Acquisition in November 2016, which ignited additional losses. Helios and Matheson Analytics ( HMNY) is an information technology company hooked on acquiring unprofitable technology, which it then mercilessly promotes.
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