by Trey Williams

by Trey Williams

Shares of MoviePass-owner Helios & Matheson Analytics Inc. HMNY, -2.49% were up nearly 9% in premarket trade after the data and technology company said it would raise $100 million in convertible notes in order to increase its stake in MoviePass. The conversion price of the notes is $12.06 per share. The deal will allow Helios and Matheson to pay the remaining $5 million balance the company owes MoviePass after closing its previous securities purchase agreement back in August. The financing will also be used to pay MoviePass an additional $20 million to exercise its option to increase its investment in the movie theater subscription service. Canaccord Genuity served as the sole placement agent for the financing, and Palladium Capital Advisors acted as a financial advisor to Helios and Matheson in the financing. "This investment should allow us to further augment our data science capabilities and platform to respond to the needs of studios and exhibitors and their challenges in better understanding their customers," MoviePass Chief Executive Mitch Lowe said in a statement. MoviePass recently said its subscriber base has reached 600,000; up from 20,000 before its subscription price cut back in August. Shares of Helios and Matheson are up more than 192% in the year to date, while the S&P 500 index SPX, -0.38% is up close to 16% and the Dow Jones Industrial Average DJIA, -0.43% is up more than 19%.