The horror story continued for Helios & Matheson Analytics — parent company of the moviegoer subscription service MoviePass — as its stock price cratered on Tuesday more than 12 percent as concerns grow over the company’s dwindling cash supply.
Helios & Matheson’s share price closed at 54 cents, an all-time low. That was actually a slightly positive end to the day, since the company stock traded at 50 cents at one point during the day.
It’s been a month of misery for shareholders, with the company’s stock falling 80 percent in the last month.
MoviePass has continued tinkering with its prices of late, moving to a movie-a-week plan for new customers for a few weeks, before bringing back its original $9.95 for a movie-a-day model.
It still offers a $7.95 per month plan providing one movie ticket per week along with a three-month subscription to iHeartRadio. AMC CEO Adam Aron recently blasted the company’s strategy, saying its business model is “unsustainable.”
An earnings beat last week briefly sent shares of Helios & Matheson Analytics upward. But that blip has been replaced with fears MoviePass will soon run out of money, with the company reporting it had less than $20 million in cash reserves.
Despite this, H&M CEO Ted Farnsworth and MoviePass CEO Mitch Lowe have repeatedly assured that the long-term sustainability of MoviePass is still solid.