Helios and Matheson, the company that owns MoviePass, the ailing movie theatre subscription service, posted a $126.6 million loss in the second quarter and its cash reserves have dwindled to $15 million. Share prices, which traded $39 per share, dropped to 8 cents a share in late July. Threatened with being delisted on NASDAQ, Helios and Matheson issued a 1-for-250 reverse split, which meant that shareholders received one share worth about $20 in exchange for 250 shares worth 8 cents a share.
But that didn't stop the decline. That $20 share is now worth less than a nickel. Time for another 1-for-250 reverse split, which would be 62,500-for-1 split on the original shares?
From CNN:
Earlier this month, MoviePass quoted Mark Twain in a release that declared, "talk of our demise is greatly exaggerated." It said it was only "going through a rough patch not unlike what other disruptive enterprises experienced in their early day."
On Wednesday, Helios and Matheson touted its year of MoviePass ownership in a news release that did not mention its financial losses. Instead, the company focused on its subscriber growth and contributions to the domestic box office.
