MoviePass is toying with one more dramatic proposal to spice up its cratering inventory value.
Executives at Helios and Matheson (, the dad or mum firm of the film subscription service, are asking shareholders to vote on a plan that might enhance the inventory by as a lot as 500-fold. )
That plan was outlined in a brand new doc filed Monday with the Securities and Trade Fee. The vote will happen at a shareholder assembly October 18.
If the plan is permitted, stockholders would commerce in as many as 500 shares for a single share value about 500 instances as a lot. The ultimate ratio has but to be decided, and shall be specified by a future announcement.
The change could be largely beauty for shareholders, since their stakes could be valued the identical as earlier than the cut up.
However the plan might increase the inventory value from about 2 cents to as a lot as $10 — sufficient to probably hold the inventory buying and selling on the Nasdaq inventory alternate. Nasdaq has warned Helios and Matheson that its inventory could possibly be delisted due to its low value.
Whether or not the value would stay excessive after the reverse inventory cut up is way from sure.
MoviePass tried to spice up its inventory from eight cents to $21 with an analogous transfer in July. However the brand new value plunged again beneath $1 inside days.
The inventory is not the one situation that endangers the corporate’s Nasdaq itemizing standing.
After a board member resigned final month, Helios and Matheson fell out of compliance with guidelines that require the corporate to have one other unbiased director. Carl Schramm, an economist and Syracuse College professor, give up his job and claimed that executives mismanaged the enterprise and withheld essential info from the board.
MoviePass burst onto the scene final yr when it started providing clients the power to look at as many films in theaters as they needed for $10 per thirty days. However that enterprise mannequin proved unsustainable, and the corporate has since modified its subscription plans, pricing and film availability.
Proper now, MoviePass presents clients the power to look at three films per thirty days for $10. The service additionally permits most customers to solely watch a handful of titles at any given time.
Within the yr since MoviePass first started attracting consideration, a number of different corporations have both launched or tinkered with their very own providers.
AMC Theaters, for instance, created a $20-per-month service that permits clients to see three films per week in AMC theaters.
Sinemia, one other competitor, on Monday mentioned it might begin providing clients in the US, the UK, Canada and Australia the power to see limitless 2-D films for a $30 month-to-month charge.
CNNMoney (New York) First printed September 17, 2018: 1:07 PM ET