In the latest MoviePass news, parent company Helios and Matheson Analytics (OTCMKTS:HMNY) sold a large chunk of its new shares to cover expenses related to the troubled cinema business, playing a role in HMNY stock losing more than half its value on Tuesday.
The IT service management business said in a press release today that it had raised $6 million in new financing. Raising the money required Helios and Matheson Analytics to sell roughly 60,000 new shares of preferred stock “Helios’ Series B Preferred Stock,” which the company said are “convertible to 1,000,020,000 shares of its common stock.”
The move is an extension of previous moves in which the business has sold large amounts of new stocks in order cover hundreds of millions in losses linked to MoviePass, which went under a few months ago, but the company has been attempting to revive in recent weeks.
The company’s decisions have greatly diluted the value of shareholders’ stake in the company. Helios and Matheson Analytics also recently amended its latest quarterly report for the period ending September 30, displaying a net loss of $138.6 million. The business said the net proceeds of the financing will be used to “accelerate MoviePass’ product development, fine tune its subscription technology, and increase MoviePass Films’ investment in new films.”
HMNY stock fell roughly 55.6% on Tuesday by closing time, with shares selling for less than a penny per share heading into Wednesday.