MoviePass Company Needs $1.2B To Reach Profit

Helios and Matheson Analytics, the parent company of movie ticket subscriptions service MoviePass, has launched a $164 million bond sale in an attempt to stay alive. The company reportedly lost $40 million in May and its estimated to lose another $45 million in June says Business Insider.

Additionally a new filing with the SEC this week suggests the company needs more than $1.2 billion of additional capital to maintain the service’s growth and eventually become profitable saying: “To maintain our growth and continue to fundamentally transform the movie industry, for the benefit of the entire movie ecosystem, we will continue to incur a significant monthly cash deficit, until or unless we achieve positive cash flow or profitability, of which there is no assurance.”

In October, Helios and Matheson Analytics was trading at $38.86 per share, it is now at just over 33 cents per share and wants to get that above $1 so it won’t be delisted from the Nasdaq. The report comes in the wake of the world’s largest theatrical exhibitor, AMC Theatres, announcing their own subscription service that will directly compete with MoviePass who responded in an unexpected way – by announcing the always unpopular Uber-style surge pricing along with additional fees for bringing a friend and IMAX & 3D options.