Helios & Matheson Analytics Inc. said on Thursday that it has confidentially entrusted the Securities and Exchange Commission to turn its MoviePass movie service.
The news was expected. The company said it would turn off the service as early as October when its board approved a plan to set up a subsidiary called MoviePass Entertainment Holdings Inc. The subsidiary will own the company's subscription service and film production and will be separated as a separate company. a publicly traded company.
On Thursday, the company said it would apply for a Nasdaq or Alternative Exchange listing and would distribute a portion of MoviePass shares as a dividend to shareholders on the date it is due to be determined. Helios and Matheson
HMNY, + 3.60%
will keep a control pack in MoviePass, which offers users various packages that allow them to see movies at discounted rates.
Helios & Matheson struggles to make MoviePass viable.
This was a quite sleeping data analysis company when it first acquired a majority stake in the service in August 2017. The company immediately reduced the monthly fee to $ 9.95 per month from up to $ 50 per month, subscribers see a movie of their choice every day. His subscription base shifted in the quarter last year. But the price to cover the full price for each ticket ordered by the subscriber overcame it and eventually negotiated through its cash and generated a series of monthly cash deficits. Sinemia will launch the service to help theaters create their own subscription programs for movies
Ambitious plans to monetize customer data by using it to sell ads and generate revenue from cash registers. with a studio or a cinema chain is not realized. In April, his auditor expressed "substantial doubt" about his ability to continue acting as a going concern.
For more information, read: The impressive climb and fall of MoviePass
In the summer, the company irritated its own customers by repeatedly changing its supply conditions, restricting access to larger movies and limiting visualizations at certain times of the day. In July, there was a "service cut" when it did not pay the vendors. By breaking up its shares, the company sells preferred shares and convertible notes and registers to collect $ 1.2 billion in three years by issuing equity and debt. He realizes the reverse division of the stocks from 1 to 250, but this did not raise the price of his shares. Shares fluctuated between 1 and 2 cents on Friday.
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Meanwhile, his main competitor, the AMC Theaters & Stubs A-List program, which allows customers to view three movies a week in any format for a $ 19.95 monthly fee, said at the end of December that there are now more than 600,000 members. This service was launched in June last year and exceeded the company's internal target of attracting 500,000 customers within one year of launch. The Subscription Program of AMC Now Offers Better Deal From MoviePass Related: The Student Loan Company offers new borrowers a free year on MoviePass
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