MoviePass Parent Stock Closes at Record Low

Helios and Matheson Analytics, the fiscally-challenged corporate parent of MoviePass, saw its shares shrink to a record low 6 cents per share, before “rebounding” to close Aug. 8 at $0.0675 per share.

The stock, which reached a split-adjusted $21.25 on July 24 prior to a 1-for-250 reverse stock split, has lost 99.7% of its value in 14 days as investors and analysts turn their backs on an unsustainable business model that essentially enabled subscribers to see a free theatrical movie daily for a $9.95 monthly fee.

MoviePass paid exhibitors face value for every ticket used by subscribers, thereby driving monthly reimbursement costs upwards of $45 million.

HMNY, which has a market cap of just $113, 737 continues struggling to reduce operating costs. The service earlier this week aborted a planned price hike, and instead restricted subs to three movies per month.

While it remains to be seen how many of the service’s 3 million subs exit following the changes, the message is clear: management wants users to go less frequently to the movie theater.

Or maybe just to see its own content.

In a strange PR move, MoviePass Films, the film financing and production unit, announced it had signed Bruce Willis to star in its first feature film, drama 10 Minutes Gone through its indie studio Emmett Furla Oasis Films. Production is slated to begin in September.

 

Bruce Willis Signed for First MoviePass Films Original Movie

Helios and Matheson Analytics, parent of fiscally-challenged MoviePass, has a market cap of just $118,600 with shares worth 7 cents each. The stock traded more than 308 million times Aug. 7 as day-traders played ping-pong attempting to glean incremental gains on a penny stock.

That didn’t stop subsidiary MoviePass Films from announcing its first feature film production, 10 Minutes Gone, starring Bruce Willis.

The veteran actor plays a man who loses 10 minutes of his memory after being hit by a stray bullet in a bank heist gone wrong.

10 Minutes is the first original production since MoviePass Films acquired indie studio Emmett Furla Oasis Films last year. Previous MoviePass Films deals including acquiring distribution rights to heist drama American Animals and John Travolta’s Gotti biopic.

Filming is set to begin in September.

 

MoviePass Parent Stock Hits New Low

Fiscally-challenged Helios and Matheson Analytics, parent of movie ticket subscription service MoviePass, saw its stock hit a new low June 5.

The company’s shares closed at 38 cents per share, after falling to 37 cents per share during day in heavy trading (23 million shares). The company’s market cap is $32.1 million. The company’s previous record low was 41 cents per share.

Regardless, MoviePass continues to diversify. May 30 it announced the launch of indie-based MoviePass Films with Emmett Furla Oasis Films, with the intent of marketing indie films to its 2.7 million subscribers across multiple platforms such as theatrical, streaming, retail, on-demand and packaged media.

 

MoviePass Eyeing Content ‘Oasis’

NEWS ANALYSIS — Helios and Matheson Analytics (HMNY), the cash-poor corporate parent of theatrical ticket subscription service MoviePass, keeps swinging for the fences. Now it wants to buy a film production company.

HMNY May 30 announced it has acquired the option to acquire indie film house Emmet Furla Oasis Films (EFO Films), whose titles include Lonesome Survivor, Broken City and End of Watch, among others. If completed, HMNY would co-0wn with EFO new business subsidiary MoviePass Films.

With HMNY’s stock trading around 40 cents per share, the deal is another corporate Hail Mary with EFO’s Randall Emmett and George Furla serving as co-CEO’s of the new company.

HMNY would own 51% of MoviePass Films, with EFO Films owning 49%. HMNY CFO Stuart Benson would serve in the same position at the new venture, with Ted Farnsworth, CEO of HMNY, serving as chairman of the board.

Mitch Lowe, CEO of MoviePass, would have a seat on the board.

“Since we began disrupting the movie industry with our unprecedented low cost movie theater subscription service, MoviePass, we have envisioned owning and developing our own content and using the power of our several million subscribers to bolster the success of our films,” Lowe said in a statement. “I believe this partnership with EFO Films will accelerate those efforts.”

Indeed, MoviePass cut its teeth in the content business earlier this year acquiring rights to American Animals with Orchard, and John Travolta’s Gotti biopic — the latter after Lionsgate dropped the film from its release schedule. Both movies are slated to be released in June.

How owning a film production company will help MoviePass, whose loss-leader business model enables subscribers daily access to a theatrical screening for $9.95 a month, is anyone’s guess.

With more than 2 million subscribers, MoviePass is a hit with consumers and a fiscal goldmine for exhibitors. But the business is burning through more than $21 million on a monthly basis, which left HMNY with about $15.5 million in cash, according to its most-recent fiscal filing.

Hedge fund Citadel Securities apparently believes the hype. It acquired a 5.4% stake in HMNY May 29, for about $1.7 million.