Helios and Matheson: Proxy firms recommend voting for reverse stock split
Helios and Matheson Analytics announced that leading independent proxy advisory firms Institutional Shareholder Services Inc. and Glass, Lewis & Co., LLC have both recommended that Helios's stockholders vote "FOR" the proposed reverse stock split and the other proposal set forth in Helios's proxy statement for the upcoming special meeting of stockholders scheduled for October 18, 2018 at 10:00 a.m. local time. In its report, ISS stated, among other things, that: "A vote FOR [the proposal to approve the reverse stock split] is warranted given that the reverse stock split may enable Helios to maintain listing of its common stock on the Nasdaq Capital Market. Furthermore, the effective increase in the number of authorized shares would enable Helios to satisfy reserve requirements under certain convertible notes." Also, in its report, Glass Lewis stated, among other things, that: "We agree with the board that it is in the best interest of the Company to reduce the number of shares outstanding and thereby attempt to proportionally raise the per share price of the Company's common stock." Helios presented the reverse stock split proposal to regain compliance with the Nasdaq Capital Market $1.00 minimum bid price requirement. If the proposal is not approved, Helios believes that its common stock will be subject to delisting from the Nasdaq Capital Market, which would adversely impact the liquidity and marketability of its common stock. Commenting on the proxy advisors' recommendations, Theodore Farnsworth, CEO of Helios, stated: "The ISS and Glass Lewis recommendations are consistent with our view that maintaining Helios's listing on Nasdaq is in the best interests of Helios and its stockholders."