The owner of MoviePass, Helios & Matheson (HMNY), announced Friday it was finally shutting down its movie subscription service. Subscribers had their service cut at 8am ET Saturday.
In a statement on its website, the company said it will be providing subscribers with appropriate refunds for their period of service already paid for.
“Subscribers will not need to request a refund or contact MoviePass™ customer service to receive a refund,” the website says. “Subscribers will not be charged during the service interruption. At this point, we are unable to predict if or when the MoviePass service will continue.”
As previously reported on ETF Trends, Helios & Matheson implemented a number of strategies to reduce the company’s cash burn and save itself from bankruptcy in 2018. This included increasing its monthly subscription fee to $14.95.
However, the company struggled to maintain a stock price above the $1 mark in August 2018, even enacting a 1-for-250 reverse stock split, which boosted price above $1 for a short time before retreating back down.
On Oct. 13, 2017, HMNY stock peaked at more than $4,000 a share, but has never recovered from its downward spiral that began in February 2018. For most of the past 12 months, the stock has been trading between 2 cents and 5 cents a share.
HMNY is currently listed at $0.0012 a share.
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