MoviePass owner Helios & Matheson is crashing again

Markets
Insider

• Shares of MoviePass owner Helios
  & Matheson are down nearly 50% Wednesday.
• The selling comes after the company announced a new
  restriction on its service. 
• Helios & Matheson shares have plunged more than 99%
  this year.

Shares of MoviePass owner Helios & Matheson are crashing
Wednesday — down almost 50% at $0.25 apiece —  less than 24
hours after
announcing a new restriction on its service.

Late Tuesday, the movie-subscription service said it would no
longer guarantee that every movie showtime will be available on
its app. That announcement came less than a day after MoviePass
said it would
raise prices from $10 a month up to $14.99 and that it
wouldn’t support big-ticket films like  “The Meg” or
Disney’s “Christopher Robin” until weeks after their releases.
The company says these changes could help reduce its cash burn by
60%. 

Shares of Helios & Matheson have been in a downward spiral
this year, plunging by more than 99%. Last week, the company

announced a 1-for-250 reverse stock split in an attempt to
lift its share price above the Nasdaq’s $1 minimum.

The reverse split temporary propped up the value of Helios &
Matheson shares to $22.50, but that same day they began plunging
again. A few days later, the MoviePass app began to experience a
“service interruption” because its owner was unable to make
certain required payments.
HMNY had to borrow $5 million to get the app up and running
again. 

Helios & Matheson is expected to report its second-quarter
results on August 14.