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The owner of MoviePass hits another new low

Jacob Sonenshine   

The owner of MoviePass hits another new low
Entertainment1 min read

moviepass business insider

Business Insider


MoviePass owner Helios & Matheson keep falling deeper and deeper into the abyss.

Shares touched a record low of $0.335 on Wednesday, accounting for a drop of more than 14%. For context they hit an all-time high of $32.90 apiece shortly after MoviePass was acquired in October.

The stock got a temporary boost of more than 6% last week when Citadel Securities announced it had amassed a 5.4% stake in the company. It hit $0.44 that day, but has has been in a downward spiral ever since as the company's cash burn remains at the top of investors' minds.

In mid-April, an internal auditor said there was "substantial doubt" the company would be able to stay in business. A few weeks later, the company said it burns about $21.7 million a month, and that its shrinking cash pile is down to $15.5 million.

MoviePass CEO Mitch Lowe has suggested the company will climb its way out of the hole by using its $300 million "equity line of credit," but financial experts told Business Insider that cash won't necessarily be there when needed.

The stock has lost 95.07% of its value this year.

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