When I was calculating how much money HMNY had left, I found something disturbing. June's note offering was the first time that I can tell this year where HMNY sold 20,500 Series A Preferred shares. Each share is worth $1,000. In the event of bankruptcy, etc., these shares get paid out before common shares.
$1,000 x 20,500 = $20.5 million, which is how HMNY received the $20.5 million cash from the June note holder/buyer. This tells me HMNY was desperate. None of the prior note holders received such a generous deal...
Also, my calculations show HMNY was low on cash by mid June. At the end of May, they only had $18.5 million left in the bank per their SEC filing.
Also, what's more disturbing is this the part (which I previously warned about yesterday) where it said "Our authorized but unissued shares of common stock are available for issuance without further action by our stockholders", which implies they can immediately start ATM dilution again (up to the previously announced $150 million limit). I'm unsure if this is what caused the selling yesterday and today?
I guess we'll only know once more SEC filings confirm the outstanding share. The current outstanding share is the 227 million + the 23 million the note holders wanted to exercise (in order to possibly dump on R/S day), or 15 days later, or to "lock in" their short profit.
Here's what the SEC filing noted:
"As of June 29, 2018 we had 249,870,588 shares of common stock outstanding and 20,500 shares of Series A Preferred Stock outstanding. Our authorized but unissued shares of common stock are available for issuance without further action by our stockholders, unless such action is required by applicable law or the rules of any stock exchange or automated quotation system on which our securities may be listed or traded."
