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Unable to stem uncontrollable losses – or prevent his actions from hitting a cliff – MoviePass is again attempting an emergency break: a stock split.
Next month, the film subscription plan will undergo a large stock split of up to 500 percent, said Monday its parent company in a regulatory file – its second group in less than three months.
Helios & Matheson Analytics will seek a shareholder vote on the split on October 18th.
The move comes as the company shares shares in a territory rarely seen less than a cent. The stock closed Monday at 1.55 cents, down 28 percent on the reverse division news.
The 1 for 500 division, based on Monday's close, would bring the Helios & Matheson share price to just over $ 8. To avoid delisting, Helios has to trade more than $ 1 for 10 consecutive days before the end of the year, which he has not done since March.
"If the Company is unable to maintain its Nasdaq listing, its access to capital will still be limited and its capital may not be sufficient to allow MoviePass to continue operations or generate positive or profitable cash flows. ".
MoviePass's problems began when the company grossly underestimated the number of movies subscribers could see after dropping its monthly price to $ 9.99.
MoviePass pays the total price of a movie ticket.
To stem the decline in stock prices, Helios suffered in July a reverse split of 1 for 250, bringing its stock to 22.25 dollars per share, against 8 cents.
But the consumption of money continued to weigh on the stock price. MoviePass has since increased its subscription price and limited the number of movies that subscribers can view at three per week from seven o'clock.
Helios admitted that the new reverse division might not do it.
"The company can [still] be removed from the list due to other shortcomings in the Nasdaq listing criteria, including the inability to maintain the required minimum market value of the listed shares to at least $ 35 million ", wrote Helios.
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