As its fans know well, MoviePass offers a $10-a-month service that allows subscribers to see a movie-a-day in the theaters. Helios and Matheson's troubles stem from MoviePass, which has become the core of its business. It continued: "Without raising additional capital, there is substantial doubt about the company’s ability to continue as a going concern through May 15, 2019." MoviePass is burning through cash at a faster-than-reported rate "Without additional funding, the company will not have sufficient funds to meet its obligations within one year," Helios and Matheson said in its quarterly report, filed on Tuesday. But because of its recent stock slump, that tap may run dry before the year is out. ![]() It's so low on cash that it says it's going to need to sell more equity in the company to the public this month to raise funds, which would mark the third time this year it's tapped the public markets. In the first quarter, it burned through cash at a faster rate than it previously reported. The company is losing more than $20 million a month and its cash stockpile is dwindling.īut recently filed regulatory documents - as well as the company's recent stock performance - indicate it may be in deeper trouble than is widely appreciated. It's no secret that Helios and Matheson Analytics, MoviePass' corporate parent, is in financial peril. But the company appears to no longer be meeting Nasdaq's listing standards, which could put future stock sales in jeopardy.Įnjoy your MoviePass subscriptions while you've got one.It's already said it needs to raise additional funds this month, potentially through a stock sale, which would be its third this year.In the first quarter, it lost money at a faster rate than it had previously acknowledged.MoviePass's parent company, Helios and Matheson, may be in a worse financial position than realized.Account icon An icon in the shape of a person's head and shoulders.
0 Comments
Leave a Reply. |