MoviePass is Becoming Its Own Company Called MoviePass Entertainment

MoviePass has been a part of Helios and Matheson Analytics up until now. MoviePass is now spinning off to become a separate, publicly traded company called MoviePass Entertainment Holdings. This move does require approval from the SEC, the state of Delaware, and the Nasdaq. That may be tricky at the moment as the New York State Attorney General’s office is investigating the company to determine if investors were misled by Helios and Matheson.

Another interesting point is that since the announcement, Helios shares shot up by 42% all the way to 2.5 cents. MoviePass has pissed off a lot of people and has had to borrow a lot of money to stay afloat. Chairman and CEO of Helios and Matheson had this to say about the spin-off:

“Since we acquired control of MoviePass in December 2017, HMNY largely has become synonymous with MoviePass in the public’s eye leading us to believe that our shareholders and the market perception of HMNY might benefit from separating our movie-related assets from the rest of our company.

We believe this new vertically integrated entertainment ecosystem, if achieved, would provide a sharper market focus, and that the combination of these four business lines under the MoviePass Entertainment umbrella would produce substantial synergies that we believe will generate value for our shareholders, subscribers, and business partners.”

Here’s how the spin-off will work according to Deadline:

“The plan is to distribute a minority of the outstanding shares of MoviePass Entertainment common stock as a dividend to stockholders of HMNY as of a record date that is yet to be determined. Helios would retain control of MoviePass Entertainment upon that distribution. Holders of any outstanding convertible notes issued by HMNY in November 2017 and January 2018 and certain warrants of HMNY would be entitled to MoviePass Entertainment shares.”