MoviePass Parent Company Delisted By Stock Exchange

Deadline Hollywood reports:

Shares in MoviePass parent Helios & Matheson began trading over the counter today after the beleaguered company was delisted by the Nasdaq.

The ouster from the major stock market comes after several warnings relayed in SEC filings in recent months, given that companies cannot have their shares trade below $1 for extended periods. Helios stock has been worth less than two cents a share since a failed attempt to goose its value last summer via a reverse-split.

In a filing, the company said a Nasdaq review panel disclosed its decision on Monday. “The company does not intend to appeal the determination of the panel at this time,” the filing said.

Business Insider reports:

Helios raised its profile in the summer of 2017 when it acquired MoviePass and lowered the service’s monthly subscription price to $9.95 a month to see one movie in theaters per day. The move led to millions of new subscribers, but also hundreds of millions of dollars in losses.

Helios has primarily used the selling of billions of new shares to cover its losses, and has seen its stock lose over 99% of its value.

Despite this, the company said in a statement to Business Insider that “HMNY’s delisting has no effect on the day-to-day business operations of HMNY or its subsidiaries, including MoviePass and MoviePass Films.”