Helios & Matheson Analytics Announces $30 Million Public Offering – Shares Plummet

Helios & Matheson Analytics

Shares of the analytics company Helios & Matheson Analytics (NASDAQ:HMNY) plummetted Thursday after the company announced a USD $30 million public offering.

The company, which owns a 92% majority stake in the movie-theatre subscription service MoviePass, will sell 10.5 million Series A-2 units of common stock at a value of $3.00 per share.

The offering will close by April 23, 2018 and Helios & Matheson have suggested that earnings may be used “to increase the company’s ownership stake in MoviePass or to support the operations of MoviePass and MoviePass Ventures.”

MoviePass is a technology company that offers a subscription service for nearly 91% of the movie theatres in the US.

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When Helios & Matheson Analytics bought more shares of MoviePass, its CEO Ted Farnsworth stated that the company “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” and “the partnership continues to be a great benefit to both MoviePass and Helios and Matheson.”

The company also provided MoviePass with approximately $45.5 million in cash advances, which Mitch Lowe, CEO of MoviePass, has said helped to the company reach two million subscribers.

On Friday, April 13, it was announced that MoviePass would be partnering with iHeartRadio for a three-month promotion plan, where new subscribers to MoviePass will have an extended free trial of iHeartRadio services.

According to Lowe, MoviePass is “having fun…energizing the movie industry, [and] constantly experimenting.”

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Share value for Helios and Matheson has gone down nearly 40% since the market opened on Thursday and has already reached a 52-week low of $2.12 USD after opening at $2.48.

The stock of Helios and Matheson continued to hover around the -40% mark. The company closed on Friday at $2.27 and opened on Monday at $2.34.

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