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

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.

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.

The 12 Best Trash Movies of 2018 So Far, from 'Den of Thieves' to 'Skyscraper'

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.
12. "Proud Mary" -- This is the story of a depressed assassin (Taraji P. Henson) who wants to get out of the dangerous life but is just too damn tired to take the initiative. It's a weird story for a movie, but one that is probably the most relatable movie about a hitman ever.
Sony
11. "The Hurricane Heist" -- This one is surprisingly topical. It's got climate change, economic anxiety, corrupt trigger-happy cops, and a situation too dire for anyone not in the immediate area to be able to help.
Entertainment Studios
10. "Skyscraper" -- I really appreciate any movie that can give me vertigo without making me watch in 3D. I also appreciate any movie that makes The Rock into a shy, nervous guy. And, lastly, I appreciate Hanna Quinlivan being such a badass -- she needs to become a movie star like yesterday.
9. "Pacific Rim: Uprising" -- I'm not much of a fan of the new "Star Wars" movies, and I dislike them a little bit more every time I see John Boyega totally own every other movie he's in. Anyway, Boyega is a delight, as is Charlie Day as the manic villain. The ridiculous scale of the robot-on-monster carnage is still wonderful, and it's made even better by "Uprising" actually being a real movie, unlike its predecessor.
Universal
8. "Breaking In" -- An excellent example of the underrated home invasion thriller subgenre. Also a reminder of how criminal it is that Hollywood has spent the last two decades not giving Gabrielle Union piles of leading roles.
Universal
7. "Tyler Perry's Acrimony" -- Sometimes I enjoy a movie just for its sheer audacity, and this is definitely one of those instances. Tyler Perry's dramas have always been pretty wild, but "Acrimony" is on a whole other level of madness. This thing makes "Temptation" look like a bog-standard romantic drama by comparison.
Lionsgate
6. "Red Sparrow" -- Folks were preoccupied with complaining about its overly long running time, dour tone and Jennifer Lawrence's stone face, but I think all of those things are what make it good. Plus, it's got a few moments that make me physically ill whenever I watch it.
20th Century Fox
5. "Fifty Shades Freed" -- I could convincingly argue that these movies are making fun of the books they're based on. "Freed" especially, because the entire movie is about how rich people should use the considerable resources at their disposal to take care of orphans -- except Ana and Christian brazenly ignore that message because that's the joke. Anyway, "Freed" stuck the landing for our generation's greatest trash trilogy.
Universal
4. "Rampage" -- Is Dwayne Johnson the patron saint of trash movies? He seems to aspire only to participate in the most fun and awesome projects, and "Rampage" is as fun as any other movie that's come out in 2018.
3. "Gringo" -- This dark comedy is extremely relatable, with a message about how awful rich people and capitalism are. "Gringo" feels extremely right in 2018. And also David Oyelowo is hilarious.
Amazon Studios
2. "The Commuter" -- Jaume Collet-Serra and Liam Neeson team up for yet another trash masterpiece, this time to deliver a screed about how corporations and cops suck. All of that is good.
Lionsgate
1. "Den of Thieves" -- A movie that will leave you thoroughly dirty by the end, while also being a major crowd-pleaser. That's a rare and wonderful combination.
STXFilms

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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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The 12 Best Trash Movies of 2018 So Far, from 'Den of Thieves' to 'Skyscraper'

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