Helios and Matheson Analytics Inc (NASDAQ:HMNY) announced plans to spin-off Zone Technologies Inc. to become a separate public company.
Approval by the board
This comes after its Board of directors approved the plan. Zone technologies will therefore become a publicly traded company that is independent and which is also expected to be listed on NASDAQ.
The split is expected to come alongside other conditions to include the effectiveness of a registration statement on Form S-1, which shall be filed with SEC together with an approved listing of Zone’s common stock on NASDAQ. The goal for the split was to enable creation of 2 publicly traded companies for which each shall be able to plan and focus on its own operational plans and strengths.
Besides, each of the companies will be able to pursue its own partnership possibilities that may be better aligned to their line of operations. HMNY upon completing the split off with Zone, plans to focus on operations regarding its CI in Moviepass and is expecting that the HMNY management shall keep its composition before its split off with Zone.
Zone also plans to continue its focus on RedZone map products growth and acquisitions however both companies will still remain headquartered at HMNY’s base of operations in New York City.
In a statement by the HMNY’s CEO, Ted Farnsworth, having now founded Zone, the company was happy to implement a split-off to enable zone maximize its potentials by being able to further RedZone map products and expanding Zone’s business models by allowing it expand into the technological sector.
Following its proposed dividend distribution of Zone’s shares pursuant to the Split-off, HMNY is in the process of evaluating the possible tax consequences if any shall be in existence to enable full compliance. From the Current report on form 8-k which was filled with the SEC on March 15, as of that date, HMNY owes no debts under any debt instruments.