MoviePass' parent company raised $6 million by selling new shares, and sent its stock crashing another 50% to under one penny
- Helios and Matheson Analytics (HMNY), the parent company of MoviePass, announced on Tuesday that it had raised $6 million in new financing.
- To raise the money, HMNY sold a bunch of preferred stock.
- The move dilutes current shareholders and sent the stock down over 50% to less than a cent (around $0.006).
On Tuesday, MoviePass' parent company, Helios and Matheson Analytics (HMNY), announced in a press release that it had raised $6 million in new financing.To raise the money, HMNY sold 60,000 new shares of preferred stock, "Helios' Series B Preferred Stock," which are "convertible to 1,000,020,000 shares of its common stock." It also issued accompanying warrants (full details here).
Selling massive amounts of new stock and diluting previous shareholders is something HMNY has become known for as it has covered hundreds of millions in losses from its movie-ticket subscription service by issuing new shares. HMNY recently amended its latest quarterly report, for the three months ending September 30, to show a net loss of $138.6 million. No further quarterly reports had been filed as of Tuesday afternoon.
This latest move sent HMNY stock down over 50% to under one cent per share (around $0.006). Since its peak in late 2017, HMNY has fallen over 99.99%.
According to the release, the net proceeds of the financing will be used to "accelerate MoviePass' product development, fine tune its subscription technology, and increase MoviePass Films' investment in new films."an unlimited plan, this time called "Uncapped."