Helios & Matheson Files to Spin Off Struggling MoviePass
(Bloomberg) -- Helios & Matheson Analytics Inc. filed for a spinoff of its MoviePass unit, a discount-cinema service whose struggles to find a workable business model have left the parent company on the brink of delisting.
- A new entity called MoviePass Entertainment Holdings Inc. will distribute a minority of its shares to Helios & Matheson holders as a dividend, according to a filing Thursday with the Securities and Exchange Commission.
- The New York-based company has been losing money after attracting millions of subscribers to MoviePass with the promise of seeing unlimited theatrical movies for $9.95 a month. It has had to restrict use of its service to retain cash and canceled a planned reverse stock split in November, having already done one in July.
- Helios & Matheson shares lost almost all of their value last year, battered by fears that the unprofitable MoviePass service won’t survive. The spinoff plan fulfills a commitment the company made in October.
- Helios & Matheson shares jumped 14 percent to 1.59 cents at 10:15 a.m. in New York.
- See more details.
- Read the statement.
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