MoviePass Parent to Raise $1.2 Billion to Save Theater Subscription Service

Helios + Matheson owns 91.8 percent of struggling box office disruptor

| July 2, 2018 @ 6:39 AM Last Updated: July 2, 2018 @ 7:19 AM
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MoviePass parent company Helios + Matheson plans to raise $1.2 billion to keep their struggling movie theater ticket subscription service going.

Stock, debt, warrants, units and/or subscription rights may be offered “from time to time in amounts, at prices and on other terms to be determined at the time of the offering,” the company wrote in a Monday filing with the SEC.

Helios said that it intends to use the proceeds “for general corporate purposes of Helios and its subsidiaries and/or to support MoviePass and MoviePass Ventures operations.”

Also Read: Can MoviePass Owner Avoid Bankruptcy as Stock Hits Record Low?

Helios owns 91.8 percent of MoviePass, which is a U.S. movie theater subscription service that provides subscribers the ability to view up to one new movie title per day for one monthly subscription price.

Shares of Helios + Matheson have had a rough go — and today’s news doesn’t change any of that. See below for a look at the stock’s performance over the last year, which is followed by a five-day snapshot best illustrating this morning’s decline.

HMNY - one year

HMNY - five days

Also Read: MoviePass to Charge $2 Extra for Major New Movies - and Add 3D, IMAX Screenings

Helios + Matheson has poured tens of millions of dollars into the $10-a-month subscription moviegoing service, fueling its growth to 3 million-plus users.

But that subscriber growth has proven costly: The company reported $40 million in MoviePass losses in May and anticipated that to grow to $45 million in June — with just $18.5 million cash on hand as of May 31.

In an April filing with the Securities and Exchange Commission, Helios + Matheson reported losses of $150 million in 2017 thanks to MoviePass and the lower subscription price launched last August.

Also Read: AMC Theatres Announces MoviePass Killer: 12 Movies Per Month for $19.95

Last month, Helios + Matheson announced plans to raise $164 million through a bond issuance in an effort to help buoy the business and boost the company’s sinking stock price. Two days prior to that announcement, Helios + Matheson proposed a number of measures to bolster its stock, including a reverse stock split and a quadrupling of shares, to 2 billion from 500 million shares.

Unfortunately, June also brought along some new competition. Two weeks ago, AMC, the world’s largest movie theater owner, launched a $20-a-month service, dubbed AMC Stubs A-list, allowing users to see up to three movies per week and receive discounts on concessions.

And those aren’t the only two options for box office buffs: Cinemark offers a Movie Club service where members get one ticket every month and 20 percent off concessions for $9 monthly fee.

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These are the best movies of the year that got no respect

From me, the "trash" moniker is high praise. These are movies that are not appreciated by the greater culture -- none have earned a Fresh rating on Rotten Tomatoes -- but which instead are B-style flicks that are more concerned with delivering feels, thrills and titillation than with "respectability." For me, this is the good stuff -- the very best of Hollywood's delightful blue collar flicks. 

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