Helios & Matheson files to spin off struggling MoviePass
Helios & Matheson Analytics Inc. filed for a spinoff of its MoviePass unit, a discount-cinema service whose struggles to find a workable business model have left the parent company on the brink of delisting.
A new entity called MoviePass Entertainment Holdings Inc. will distribute a minority of its shares to Helios & Matheson holders as a dividend, according to a filing Thursday with the Securities and Exchange Commission.
The New York-based company has been losing money after attracting millions of subscribers to MoviePass with the promise of seeing unlimited theatrical movies for $9.95 a month. It has had to restrict use of its service to retain cash and canceled a planned reverse stock split in November, having already done one in July. Helios & Matheson shares lost almost all of their value last year, battered by fears that the unprofitable MoviePass service won’t survive. The spinoff plan fulfills a commitment the company made in October.