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MoviePass Owner to Sell $164 Million in Bonds to Boost Struggling Company

Shares were up roughly 7 percent during intraday trade on Thursday

Helios & Matheson Analytics, the data company that owns the divisive subscription movie-going service MoviePass, said on Thursday that it plans to raise at least $164 million to try to save its struggling business and boost its stock price.

In a filing with the Securities and Exchange Commission on Thursday, the company said it plans to raise the funds through secured convertible notes and issue up to 20,500 shares of the company’s stock.

The plan is to use the proceeds “for general corporate purposes, transaction expenses and, subject to the rules of the Nasdaq, for acquisitions,” the filing said.

Shares of Helios & Matheson were up nearly 7 percent on Thursday after the company announced the bond and stock issuance, but the stock price has declined nearly 89 percent in the last three months, and roughly 95 percent in the year to date.

The company needs to boost its stock price, now trading around 30 cents, as it tries to stave off being delisted from the Nasdaq. On Tuesday, Helios & Matheson told shareholders in an SEC filing that it was proposing a number of remedies in order to boost its stock.

According to Nasdaq listing rules, when a company’s stock has been trading below $1 for 30 consecutive days, it is in jeopardy of being delisted — the first of many warning signs for a publicly-traded company.