Industry News

MoviePass may sell $1.2bn in equity and debt 

MoviePass’ owner is looking to sell up to $1.2bn in equity and debt securities over three years in an effort to finance operations and growth.

The movie subscription provider, which now boasts three million users, has continuously faced doubts about its financial future from observers and investors. 

Helios and Matheson Analytics, which owns 92 per cent of the shares of MoviesPass, has filed an S-3 universal shelf registration statement to sell off up to $1.2bn over three years from the statement’s approval by the SEC.

The move gives another flexible way of raising cash to finance operations and to invest in growth, Tech Crunch reports. 

“HMNY will have the flexibility to publicly offer and sell from time to time common stock, preferred stock, debt securities, warrants, subscription rights, units or any combination of such securities,” the company notes in a statement.

“HMNY may periodically offer one or more of these securities in amounts, at prices and on terms announced, if and when the securities are ever offered. The specific terms of any potential future offerings, along with the intended use of proceeds of any such securities offered by HMNY, will be described in a prospectus supplement at the time of any such offering.”

MoviePass recently revealed that some members will pay surge pricing supplements for high-demand films from July.

MoviePass chief executive Mitch Lowe told Business Insider that the surge pricing would only happen under certain conditions.

“At certain times for certain films — on opening weekend — there could be an additional charge for films,” Lowe said.

The announcement comes shortly after AMC Theatres launched its own monthly subscription ticket to compete directly with MoviePass and its unlimited $9.95-a-month model.

Image: Helios and Matheson