This is a very quick update about my experience at the shareholder meeting yesterday.
First - all proposals passed but they did not provide the vote count. The vote counts will be provided in an SEC filing within 4 business days. There is alot of discussion that the increase in authorized shares is dilution or means immediate dilution is coming. This is not necessarily true. If you read the SEC filings for this proposal, you will learn that the primary motivation for this vote was to get the other 80M of the previously announced 100M financing. If you recall, some time ago they announced 100M in financing but what few people know is that only 20M was guaranteed and the other 80M is still outstanding to HMNY. This vote clears they way for this other 80M however I will warn that this topic was not discussed at the meeting.
The most important thing I got out of the meeting is that Ted Farnsworth comes off as extremely honest. All the shareholders I spoke with agreed. He wears his emotions on his sleeves and is very easy to read. After meeting him, I do believe Ted is a good person and an honest man.
Both Ted and Mitch were aware of my previous work and were happy to meet me. They also agreed to do follow-up interviews with me. I have no timeline for this but if I do an exclusive interview with them for SeekingAlpha the focus will be their personal backgrounds, their careers, and their future goals.
Regarding all other information, the shareholders tried hard to get new information but they could only disclose already public information. I will tell you this though. I expressed my concern to Ted about the proxy-nature of the investment and he was well aware. I am 100% certain Ted is motivated to make sure that MoviePass trades as a stand-alone company in the near future.
Mitch and Ted were very confident especially when it came to their tactics with AMC. We tried hard to ask difficult questions but we only got the right answers. Everything is on track. Everything.
I came away very pleased from the meeting and I look forward to providing exclusive coverage of MoviePass to the investor community in the near future.
Disclosure: I am/we are long HMNY.