MoviePass’s parent files to spin off the ailing film-subscription service

Helios & Matheson Analytics Inc. on Thursday said it has filed confidentially with the Securities and Exchange Commission to spin off its cinema discount-ticketing service MoviePass.

The company said it would spin off the service back in October, when its board approved a plan to create a subsidiary called MoviePass Entertainment Holdings Inc. The subsidiary would hold the company’s subscription-service and film-production arm and be spun off as a separate publicly traded company.

On Thursday, the company said it would apply to list on Nasdaq or an alternative exchange, and distribute some of MoviePass shares as a dividend to shareholders as of a record date yet to be determined.

The company immediately slashed the monthly fee to $9.95 a month from up to $50 a month, allowing subscribers to see a film of their choice every day.

With its stock crashing, the company sold preferred stock and convertible notes and filed a shelf registration to raise $1.2 billion over three years by issuing equity and debt.

New York Attorney General Barbara Underwood has launched a securities fraud investigation into the company.

Read now: AMC’s subscription program now offers a better deal than MoviePass.

This article was summarized automatically with AI / Article-Σ ™/ BuildR BOT™.

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