Helios and Matheson Analytics Inc (NASDAQ:HMNY) is gunning for the movie theater market, as its majority stake acquisition MoviePass keeps firing up. This subsidiary could very well be the next Netflix: movie theater edition, having just drawn over 2 million subscribers.
The idea? Give movie theatergoers what they want- at a far more attractive cost. The cheap pass that gives consumers access to monthly movie screenings is a concept that clearly seems to be working, as the tech mover and shaker had already grabbed 1.5 million subscribers in January. Now that 1.5 million is a solid 2 million in MoviePass’ subscriber base- a base that is taking off at a double-time pace.
Therefore, it is no wonder HMNY wants to maximize on this opportunity, revealing total ownership of the outstanding shares of MoviePass’ common stock now translates to roughly 78%- not including shares underlying MoviePass options and warrants.
This ownership boost arises from HMNY’s cash advances to MoviePass, from time to time, from December 19th of last year through just yesterday. HMNy’s cash advances to MoviePass were funneled to bolster the tech platform’s working capital as well as operational requirements- all while supporting the company’s quickly expanding business plans and objectives. The collective amount advanced by HMNY to MoviePass throughout this period totaled $45,525,000.
Meanwhile, HMNY revealed that on back of its last announced public offering of Series A-1 and Series B-1 Units, starting yesterday, HMNY has 37,889,587 shares of its common stock issued and outstanding.
“Helios’ capital investment has fueled our growth to approximately 2 million subscribers and enabled us to move closer to our vision of transforming the movie industry,” cheers MoviePass CEO Mitch Lowe. “Our goal has always been to drive more people to the movies, while reinvigorating the entire ecosystem that includes theaters, studios and distributors. Our relationship with Helios makes that possible.”
“We 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,” noted Ted Farnsworth, CEO of HMNY. “The partnership continues to be a great benefit to both MoviePass and Helios and Matheson shareholders.”