In an effort to keep subscription ticketing service MoviePass afloat, parent company Helios & Matheson Analytics said it may raise up to $1.2 billion through a combination of stock and debt offerings.
According to an SEC filing, the company said it would use the proceeds “for general corporate purposes of Helios and its subsidiaries and/or to support MoviePass and MoviePass Ventures operations.” The schedule for the potential sale of debt and equity is not fixed, however. The “shelf registration” filed with the SEC says that the sale can occur “from time to time.”
Shareholders are scheduled to vote later this month on proposals including a reverse stock split, which is designed to shore up the company’s flagging stock price, as well as an influx of new shares.
Speaking of which, investors did not appear to be too receptive toward the latest rejuvenation plan. Shares in Helios & Matheson are down 16% at 26 cents a share in early trading.
Along with the core $10-a-month ticketing plan, the company has launched financing arm MoviePass Ventures (which backed the disastrously received Gotti last month) as well as a production division.
MoviePass has racked up more than 3 million subscribers, but it is burning a lot of cash. During the heavy summer moviegoing season, it has reported having monthly cash deficits of more than $40 million. In a previous SEC filing last week, it had signaled it could need at least $1.2 billion to fund its ambitious strategy, which focuses on user data gleaned from ticketing transactions.
While the company has often made news, lately the updates have been coming at an almost daily rate. Late last week, the company opened a store to sell hats, hoodies and other merchandise. Weeks earlier, it acquired Emmett Furla Films, intending to use the indie production outfit as the foundation of its new moviemaking unit. The data from the ticketing side, it said, would empower the production side. As MoviePass CEO Mitch Lowe put it, the game plan was “owning and developing our own studio content and using the power of our several million subscribers to bolster the success of the box office for our films.”