Subscription movie ticketing service MoviePass is again in the news today, this time though it’s feeling the burn – from irate investors.
The parent company of MoviePass, Helios and Matheson Analytics, announced plans it is looking to sell $150 million in new stock – with much of the cash heading straight to MoviePass which is reportedly burning through $20 million a month.
Shares of Helios and Matheson Analytics plummeted more than 40% in early trading Thursday. Six months ago their stock traded at a high of $32.90 per share, on Thursday it fell to a low of $2.12 before closing at $2.55.
The news comes as MoviePass recently changed its conditions with new users now restricted to four films per month – as opposed to the once daily limit which still applies to existing users.
Source: The New York Post