Helios & Matheson (HMNY), parent of MoviePass, was trading at 8 cents on Monday, up nearly 20 percent, as the company has announced another series of changes intended to lessen cash burn. The new plan reverses the previously announced changes including an increased monthly fee, surge pricing system, and limits on major new movie releases.
Monthly subscription cost will remain at $9.95, however, users will now be limited to seeing three movies a month, which will take effect August 15. MoviePass says that 85 percent of customers already see three or fewer movies per month.
“It has become clear that a small number, only 15 percent, of the subscriber base has been stressing the system,” said Ted Fransworth, CEO of Helios and Matheson.
For users who wish to see more than three movies per month, MoviePass will offer discounts ranging from $2 to $5 on tickets.
Helios and Matheson stock has seen erratic fluctuations, plunging from $39 in October to 8 cents last month. 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. On Monday, share price has risen about 20 percent to 8 cents at the time of writing.
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