I recently invested in $HMNY, a listed company and the owner of MoviePass. I invested it simply because that I love the MoviePass idea.
Then, rumors says that the company wouldn't last long for the business model is a bad idea (that may lose lots of money to buy tickets for its subscribers)
Then, I read an article here on BusinessInsider. It says
"So the SEC approved for Helios and Matheson the ability to sell up to $300 million of its stock in the format of what is called an ATM. An ATM essentially means you can put on the market shares on a daily, weekly basis, and feed them into the market, and as long as people want to buy them, then that money can go into the coffers of HMNY and therefore go into MoviePass to fund our growth — to fund our ticket purchasing and our acquisition of subscribers.
"It's kind of a science in that you can't put all $300 million out there. You put a little bit every day. If you look at how many shares are sold every day, I think there are some days 25 million shares, 10 million shares — I think the average is 6 million shares — so you can imagine you can put four or five hundred thousand shares out there without having much impact on the demand.
"I have no idea. It's a third party that manages it on behalf of HMNY, but essentially some days they might sell, some days they might not sell. It's all kind of based on what they believe will have the least impact on the valuation."
If they start to sell the stocks, then who will get the money (of stock sales)? Since they said to sell stocks to meet the needs of company usage, does this mean they are not selling their personal shares? Then what kind of shares are they selling? And will the other shareholders (like me) get diluted?