Sometimes the sequel is a whole lot worse than the original.
MoviePass parent company Helios and Matheson learned that the hard way after its stock sank to 7 cents a share in a little over a week after it underwent a desperate 1-to-250 reverse split to bring its then-8 cent stock price up to $22.50.
Last Tuesday’s reverse split was meant to save Helios from getting delisted — the stock needs to trade above $1 for 10 consecutive days — but ended up backfiring spectacularly. A day after the maneuver artificially inflated the share value, the stock plummeted more than 50 percent to $10.60. By the end of the week, shares were at $2.
The damage was made worse by the MoviePass app crashing Thursday evening (July 26) and acting erratically last weekend (July 27, 28 and 29), which the company attributed to it briefly running out of funds to pay for tickets.
The carnage continued during this week, with shares losing 96 percent of their value before coming full circle to end at the 7 cent mark on Friday.
Even MoviePass’ Tuesday announcement that it would be raising the prices for its all-you-can-watch movie subscription service from $9.95 per month to $14.95 per month couldn’t pull the stock up.
Triton Funds, a $25 million alumni fund based in La Jolla, Calif. and run by UC San Diego students, wants to revive MoviePass.
The millennial-focused fund wants to take Helios private and eliminate surge pricing from MoviePass, co-founder Nathan Yee told The Post.
“It doesn’t take a genius to figure out the company has been so busy running a publicly trading company that they’ve lost focus on [CEO Mitch Lowe’s] dream to provide movies to the masses,” Yee said.
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