(Reuters) - Helios and Matheson Analytics Inc (HMNY.O) said on Tuesday it would sell shares to raise funds to increase its stake in online ticketing service MoviePass, sending Helios’ shares plunging 22 percent aftermarket.
The company’s shares soared as much as 31 percent in regular trading after retailer Costco Wholesale Corp (COST.O) agreed to offer a subscription plan that would cover a year of membership for both MoviePass and streaming service Fandor for a flat fee of $89.99.
Helios did not disclose the size, date or terms of the offering.
The company’s shares have sky-rocketed since Aug. 15, when it agreed to buy a majority stake in MoviePass for $27 million.
MoviePass, a Netflix-style movie subscription business, allows unlimited access to more than 90 percent of U.S. theaters for a monthly subscription fee of $9.95.
The switch to a single $9.95 model in August helped the company’s subscriber numbers surge to over 400,000 from less than 20,000 within a month.
To Tuesday’s close of $10.08, Helios had more than tripled in value this year.
Helios is a highly shorted stock, with about 42 percent of its total float held by short sellers as of Nov. 30, according to Thomson Reuters data.