Down over 97 percent in the last week, Helios & Matheson (HMNY), owner of MoviePass, has announced a series of new plans to reduce the company’s cash burn and save itself from bankruptcy.
Helios & Matheson said on Tuesday that it would raise the monthly subscription fee to $14.95 within the next 30 days. In addition, newly released movies that open in over 1,000 theaters will be limited in availability for MoviePass users during their first two weeks.
After the announcement, Helios stock grew to $1.81, before plummeting back down to a price of $0.54 at 1:55 pm Eastern on Tuesday.
The company has struggled to maintain a stock price above the $1 mark. Upon receiving a Nasdaq delisting warning last week, Helios & Matheson enacted a 1-for-250 reverse stock split, which boosted price above $1 for a short time before retreating back down.
“Over the past year, we challenged an entrenched industry while maintaining the financially transparent records of a publicly traded company. We believe that the measures we began rolling out last week will immediately reduce cash burn by 60% and will continue to generate lower funding needs in the future,” said Ted Farnsworth, CEO of Helios.
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