When the time comes, you'll be judged for your actions.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Nice positive article
I'm only stating the facts for a healthy debate. I do have my views but my avg long price is .06 so I've definitely not been right so far.
The June note conversion price was $250 but this was racheted down to .02 but was pending the R/S to ensure enough shares. So you comment "This was never going to happen" isn't really true. We haven't even had the vote yet so we don't know the outcome. If the vote was a yes then the June note would have been convertible at .02
The June note was sitting there happily accruing interest at 5%, I'm just surprised that an investor would choose to negate this and change to 3% without the option to convert. Maybe they are cooking the books or trying to trick investors to vote Yes to the R/S vote but the timing seems a bit off to me, i.e why do this weeks after the proxy vote has gone out.
So the lender has given 20million of their cash without expecting it to be returned? The loan is at 3%, their notes were offered at something like a 15% discount paying 5% or 10% interest depending on wether it was restricted or unrestricted prinicipal.
The note holder agreed to rip up part of the convertible note to offer a non-convertible loan at a better rate. Do you really think they would do this to a company that wasn't near to break even or even profit?
Its in the June note filing that a R/S has to be called by the 18th oct regardless of what you think the reasons are. I'm no fan of Ted and what he's done to shareholders but they have secured at 20m non-convertible loan that does have to repaid. You think the lender took that decision without DD and without thinking they would get paid back?
Ok - wires crossed
Apart from the 20million they already have on non-convertible terms.
I've never seen complaints about e-ticketing schedules
Actually the R/S was called as a condition of the June note to cover reserve shares
How do you know that?
They will go e-ticket only at some point. Most theatres work at an average of less than 10% capacity. What if an e-ticketing theatre could achieve over 50% with MP pushing customers to them
ATM has stopped for now, at least until a new SEC filing. Helios also secured a 20million non-convertible loan at 3%
still waiting for the proof please..
I'm a retail investor like most here so it's just opinion but I can't see it going through. It was such a sh1t show last time with so many people burnt that they would be mad to vote Yes. There are no institional investors other than Hudson but even they don't have the votes they had last time and they are in a different position now having offered a non-convertible loan to Helios.
It's also important to remember that this R/S was called on the 18th Oct as it was required in the small print of the June Note to ensure enough reserve shares were available for their conversion. Since the June note has now been redeemed in full Helios have enough shares in reserve for the current notes outstanding (approx 40mm USD for Nov/Jan)and don't need to call this meeting...just yet.
Of course they need to address the issue of having a share price under the $1 limit required to stay listed on Nasdaq, however, they still have some more time. I'd much prefer to see some positive PR which gets the share price up..even if it's stable at 0.05 or 0.10 for a few weeks, and then another vote for a R/S at a fixed ratio between 10 and 20-1. Then I would most likely vote yet
As of the 14th Sep the conversion price was 0.02 (mentioned in the sec filing from the 26th Sep) If helios has diluted shares via ATM since at a lower price then then the conversion price would rachet down, however, I just don't think this has happened.
Don't get me wrong I don't think Ted has any regard for shareholders but they've had plenty of times to raise money at .02. Even offering shares at .019 would increase the reserve shares by 100mm
This is taken from the nov note filing
7. RIGHTS UPON ISSUANCE OF OTHER SECURITIES.
(a) Adjustment of Conversion Price upon Issuance of Common Stock. If and whenever on or after the six month anniversary of the Subscription Date until the date on which none of the Notes remain outstanding, the Company issues or sells, or in accordance with this Section 7(a) is deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of Common Stock owned or held by or for the account of the Company, but excluding any Excluded Securities (as defined in the Securities Purchase Agreement) issued or sold or deemed to have been issued or sold) for a consideration per share (the “New Issuance Price”) less than a price equal to the Conversion Price in effect immediately prior to such issuance or sale or deemed issuance or sale (such Conversion Price then in effect is referred to herein as the “Applicable Price”) (the foregoing a “Dilutive Issuance”), then, immediately after such Dilutive Issuance, the Conversion Price then in effect shall be reduced to an amount equal to the New Issuance Price. For all purposes of the foregoing (including, without limitation, determining the adjusted Conversion Price and the New Issuance Price under this Section 7(a)), the following shall be applicable:
The conversion price of the notes is still 0.02 until HMNY offer shates at a lower price. The underlying share price makes no difference
Big George told people it's a sham on here and they are staying away
They have sufficient shares per my previous post.
The note holders decide if/when they prepay the notes. Until this happens they can't be converted to shares. The note holders can only own 9.99% of the float so they can't just prepay all the notes at once. If they do prepay and HMNY don't need the cash then HMNY can simply redeem the exact same amount thus reducing the outstanding amount of the notes.
They have the right to issue 5 billion shares. 1.3 billion outstanding and still plenty in reserve to cover off the Jan and Nov notes (should they be prepaid)
Also remember the R/S meeting was called as it was a condition of the June note offering to ensure there were enough reserve shares.
In accordance with terms of the SPA, the Company is obligated to convene a special meeting of its stockholders (i) not later than October 18, 2018, to approve, to the extent required by Nasdaq Listing Rule 5635, the issuance of all shares of common stock of the Company that may be issued pursuant to the terms of the Convertible Notes, and (ii) not later than July 18, 2018, to approve a reverse stock split of the common stock of the Company.
Totally with you here, people are over estimating the power of the Preferred shares
There are 20500 preferred shares each with voting power of 3205 votes
20500*3205 = 65,702,500 out of 1.3billion O/S float = 5% of vote
Last R/S it was as follows
65,702,500 out of an O/S float of 249mm = 26% of vote
That is exactly what I'm saying. They have enough shares in reserve to cover notes, dilution has finished. Of course they can start another round of funding and a new dilution plan but that hasn't been agreed yet as yet.
They have a non-convertible note at 3%..let that sink in for a while.
You think companies with no future get lent 20mm at 3% when base rates are 2.25%?
Tesla's last bond was issued at 5.3% when rates were a point lower.
They have enough reserve shares now as the June note was cancelled
it will need a new SEC filing if they are going to sell shares ATM
Nov, Jan note holders could still prepay and convert to shares which would dilute the O/S
Yes that's exactly what I think.
What if they now believe in the future of the company and have no interest in selling at .02?
50mm traded..just over a million USD notional. Dilution..I doubt it
I've read them. I suggest you look up the meaning of 'certain'
An interesting point - the June note is the reason why the R/S meeting was called for the 18th Oct (part of the June note SEC filing) and why the split ratio was so high (to cover the reserve shares)
Since the June note has been ripped up I wonder if the meeting will be moved and/or the RS ratio adjusted.
I have to disagree. Nothing in the latest filings says dilution is certain.
I understand the 8m fully. 60mm left in convertible debt, notes holders can't own more than 9.99% of the company so can't convert unless they sell the shares they own.
The new note isn't convertible and pays 3% interest, why would some one lend at 3% when bases rate is 2.25% if they didn't believe in the company
Read the latest 8k and cover your short. Dilution is stopping and they have non convertible debt now
I had the same thought. I bet the R/S is postponed until a later date now
approx 50mm left from nov and jan notes buts its restricted and cant be converted until its prepaid (plus the note holders can only ever own 9.99% of the outstanding shares)
The junes notes have now gone which is great news..was over 100mm
and despite Ted's freudian slip with the 65MM they raised. They have infact raised 25mm through the new non-convertible note. Proper funding without any dilution
read the rest of the 8k
I totally agree with this comment, I wouldn't be surprised if this closed above .05 today
switching a note from convertible to non-convertible is a big plus