Helios and Matheson Analytics Inc (HMNY)

[BobDoleYahoo]

They stopped doing ATM a few weeks ago when they reached the share limit.

Remember, in any chemical reaction equation (Oxygen and Hydrogen into water for example), such as H + 0 = H20, the limiting reagent is the reagent with the least amount of units.

For example, if it requires 2 Hydrogen atoms and 1 Oxygen atom to form water, if there's 2 billion Hydrogen atoms and 2 billion Oxygen atoms, at most, it can only form 1 billion water molecules.

The limitation in the ATM dilution was:

$150 million

-or-

Allowed outstanding shares, which is 500 million authorized shares - 277 million shares reserved for note holders = ~223 million shares.

They had to stop diluting or else they would default and HMNY owes all the money back immediately.

Effectively, the limiting component here was the share count. They somehow managed to go to 227 shares outstanding. In fact, after note holders and HMNY agreed to let them have like 23 million shares or whatever, they are now at 250 million shares or so outstanding.

Now the kicker as I pointed out before is the latest SEC filing talks about HMNY being able to sell shares without shareholder approval. I don't know what that means but that sounds like they are re-doing ATM dilution again. How they can legally do that? I don't know.

See my post history man. This is why so many misguided longs are surprised when Ted Farnsworth slaps them on the side of the head.