Helios and Matheson Analytics Inc (HMNY)

[Power of Emouna]

I would say no bankruptcy they should be profitable again within 1 year time from what CEO said in his interviews.

Here's the part I found very interesting.

Furthermore, Federal Law protects the public against false or misleading statements. Therefore, HMNY executives are not free to suggest a reverse split will help their cause in staying listed on NASDAQ.

Finally, and perhaps most important, the proxy card for the original reverse split stated that this was a "one time" reverse split. It's not even clear that a second reverse split could be voted on at all. New investors relied on that language used in the proxy card, then reused in the filings. A "one time" reverse split was authorized. Because of the chosen wording, only one reverse split should ever take place. But if somehow there were to be a second reverse split proposed, it could only be accomplished through another shareholder vote with proper notification to the public and to NASDAQ. HMNY cannot just do it again on their own.

So, a second reverse split is not possible without a shareholder vote, and maybe it's not even possible with a shareholder vote. I know I relied on that "one time" language to invest in HMNY post reverse split, thinking the proxy card language was permanently binding. I have not found another proxy card authorization that uses that term "one time" with regard to a reverse split. I have seen it used for executive bonuses, which I do not think can be increased if they were authorized for "one time". Therefore, the same restriction should apply to a reverse split.

But on this point, I am not sure how the law would handle it. I would be inclined to go to court to stop a second reverse split via injunction and then just let the court decide.

The Nasdaq listing agent would be insane to approve a second reverse split. While it's true, NASDAQ cannot prevent any company from doing multiple reverse splits, Publication Number 1516 shows that NASDAQ can delist the stock even if a second reverse split raises the minimum bid to $1 for more than ten days.

Knowing all of this, HMNY executives are subject to CFR 240.14a-9:

§ 240.14a-9 False or misleading statements.

$HMNY$