The increase in ownership stems from cash advances provided by HMNY to MoviePass, from time to time, from December 19, 2017 through February 15, 2018. These cash advances to MoviePass were used to support MoviePass’ working capital and operational requirements, as well as to support the expansion of MoviePass’ business plans and objectives. The total amount advanced by Helios to MoviePass during this period totaled $45,525,000.
“MoviePass™ is attracting people back to the movie theaters by lowering their cost, which we believe is transformational for the industry,” said Ted Farnsworth, Chairman and Chief Executive Officer of HMNY. “We believe the data MoviePass™ collects from these million and a half movie-goers will become an important asset to our partners and the future of the movie industry,” Mr. Farnsworth continued.
Helios and Matheson Analytics Inc., the nation’s premier movie-theater subscription service, announced the pricing of a best efforts underwritten public offering of an aggregate of 8,261,539 Series A units (the “Series A Units”), with each Series A Unit consisting of (i) one share of the Company’s common stock, par value $0.01 per share (the “Common Stock”), and (ii) one Series A Warrant to purchase one share of Common Stock (the “Series A Warrants”); and (B) 969,230 Series B units (the “Series B Units”, and together with the Series A Units, the “Units”), with each Series B Unit consisting of (i) one pre-funded Series B Warrant to purchase one share of Common Stock (the “Series B Warrants”, and together with the Series A Warrants, the “Warrants”) and (ii) one Series A Warrant, with anticipated gross proceeds of approximately $60 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by HMNY.
Helios and Matheson Analytics Inc. (NASDAQ: HMNY), a provider of information technology services and solutions and a majority owner of MoviePass Inc. ("MoviePass"), the nation's premier movie-theater subscription service, today announced that it has commenced a best efforts underwritten public offering, subject to market and other conditions, to issue and sell shares of its common stock and warrants to purchase shares of its common stock. The shares of common stock and warrants will be issued separately. There can be no assurance as to whether or when the offering may be completed, or to the actual size or terms of the offering. HMNY intends to use the net proceeds from this offering to increase the Company's ownership stake in MoviePass or to support the MoviePass operations; to satisfy a portion or all of the amounts payable in connection with its outstanding convertible notes, to the extent that they remain outstanding; and for general corporate purposes.
MoviePass™, the nation's premier movie-theater subscription service and a majority-owned subsidiary of Helios and Matheson Analytics Inc. (NASDAQ: HMNY), and Fandor®, the streaming service with the largest collection of independent films, documentaries, international features and shorts, today announced that both companies are partnering with Costco to offer a one-year subscription plan for a flat fee of $89.99. The package deal for both services is available exclusively to Costco members and covers a year of membership for both MoviePass and Fandor.
MoviePass™ is offering a one year subscription plan for a flat fee of $89.95 (including a $6.55 processing fee). Existing MoviePass customers will receive 25% savings from their current $9.95 per month plan if they subscribe to the new one year MoviePass™ subscription plan.
HMNY has entered into a securities purchase agreement with institutional investors for HMNY to issue convertible notes in the aggregate principal amount of $100,000,000 (the “Notes”), for the purpose of further funding MoviePass, and for general corporate purposes. HMNY is not obligated to register the resale of any shares underlying the Notes with the Securities and Exchange Commission. Absent registration, the investors may resell the shares underlying the Notes only pursuant to Rule 144 or another available exemption from registration.
The continued growth trajectory exceeded MoviePass’ initial projections, and now MoviePass projects that it will acquire at least 3.1 million additional paying subscribers through August 18, 2017, exceeding its previous estimate of 2.5 million subscribers. HMNY also announced that MoviePass had a subscriber churn rate of 4.2% for month 1 and 2.4% for month 2 after announcing its new $9.95 per month subscription price. Based on current churn rates, monthly subscriber retention is above 96% and average paying monthly subscriber life expectancy is 46.8 months.
Helios and Matheson Analytics Inc. announced today that, since August 15, 2017, it has received aggregate gross cash proceeds of approximately $12.8 million from the holder of its senior secured convertible notes, thereby satisfying the $10 million financing condition to HMNY’s pending acquisition of a majority stake in MoviePass Inc. (“MoviePass”), which was announced in August 2017. HMNY also announced that it has agreed to increase the purchase price for its stake in MoviePass from $27 million to $28.5 million, which will increase its ownership stake in MoviePass from 53% to 53.71% upon the closing of the transaction.
MoviePass projects that it will acquire at least 2.5 million additional paying subscribers during the next twelve months, and expects to retain at least 2.1 million of those additional paying subscribers at the end of that period.
Following the announcement of the new MoviePass $9.95 per month subscription price, during the six-day period from August 15, 2017 through August 20, 2017 (the “Measurement Period”), two theater chains that have partnerships with MoviePass reported outstanding attendance by MoviePass subscribers.