Helios and Matheson Analytics announced Friday that it has bought even more stock in MoviePass, the trending subscription service that offers customers a free movie ticket per day.
In a press release sent to the Deseret News, HMNY said it has raised its outstanding shares of MoviePass’ stock to about 78 percent.
"We could not be more thrilled to hold a bigger stake in MoviePass, as the MoviePass phenomenon has become a major disruption to the entertainment industry,” said Ted Farnsworth, CEO of HMNY, in a statement. "The partnership continues to be a great benefit to both MoviePass and Helios and Matheson shareholders."
The increased ownership comes after HMNY provided cash advances to MoviePass from Dec. 19, 2017, to Feb. 15, 2018, “to support MoviePass' working capital and operational requirements, as well as to support the expansion of MoviePass' business plans and objectives,” according to the press release.
HMNY advanced $45,525,000 to MoviePass, according to the press release.
MoviePass CEO Mitch Lowe said HMNY’s advanced pay helped the company reach 2 million subscribers and that the increased investment will help MoviePass continue to grow.
"Our goal has always been to drive more people to the movies, while reinvigorating the entire ecosystem that includes theaters, studios and distributors. Our relationship with Helios makes that possible,” he said.
The announcement comes after HMNY’s stock dropped by more than 30 percent, according to MarketWatch.
According to CNA Finance, the public offering of the shares means the company may need more money.
“If there was no need for money, there would be no need to dilute the shares currently in the market by offering new shares for sale,” CNA Finance reported. “Some are arguing that the offering shows that the MoviePass service is a bust and that profitability is a long way away, if it ever comes.”
CNA Finance said HMNY will need to grow its own efforts of data collecting quickly so it will have enough money to fund MoviePass.
The drop in stock amount — with each share costing $5.63 on Tuesday — came after last week’s announcement that the company helped raise MoviePass to 2 million subscribers.Comment on this story
MoviePass lowered its monthly price to $7.95 last week, according to the Deseret News. The company also offered a bonus subscription movie streaming service called Fandor in its latest package, which will cost customers $115.35 annually, including a $19.95 processing fee.
MoviePass subscribers previously paid $9.95 per month for the service that gives customers a movie ticket per day.
"We're having fun. We're energizing the movie industry, constantly experimenting,” Lowe told The Hollywood Reporter.