MoviePass’ owner drops below $1, could face delisting from the Nasdaq

AP Photo/Darron Cummings

• MoviePass owner Helios and Matheson Analytics was trading below $1 on Monday, less than a week after the company underwent a reverse stock split to boost its share price.
• The stock has plummeted from $14 Wednesday to as low as $0.77 on Monday, days after MoviePass experienced a service outage and borrowed $5 million in cash to turn its app back on.
• Shares of HMNY would have to close at $1 or above for 10 straight trading days for the stock to no longer be at risk of being delisted in mid-December.

MoviePass’ parent company, Helios and Matheson Analytics, was trading below $1 on Monday, less than a week after the company underwent a reverse stock split in an attempt to stay listed on the Nasdaq.

Helios and Matheson was trading as low as $0.77 Monday, a sharp drop from the $14 share price it was trading on Wednesday after performed a 1-for-250 reverse stock split on Tuesday.

The stock’s plummet comes as MoviePass faces dire prospects in its attempts to be financially sustainable.

The subscription service had an outage on Thursday after the company ran out of cash. Its service came back on Friday after the company borrowed $5 million in cash, which HMNY disclosed in a Securities and Exchange Commission filing. 

Many MoviePass users complained over the weekend of having issues with checking in on the app and purchasing a ticket on their card. Users also complained that the company was now charging users “surge prices” for films that had been out for weeks or were not showing at peak times.

According to Nasdaq, shares of HMNY would have to close at $1 or above for 10 straight trading days for the stock to no longer be at risk of being delisted. It must also have a market cap of $50 million (its estimated market cap was about $1.5 million Monday, according to Yahoo Finance). If these conditions aren’t met, HMNY is at risk of getting kicked off the exchange starting December 18.