![]() The conversion rate was initially at $12.08/share and had a 'floor' at $1.928/share which, if the share price were to drop that low, that price could be negotiated even lower. ![]() As I described in my article from last year entitled, " MoviePass Will Fail And Decimate Helios And Matheson's Shareholders", the company had sold a convertible note for $100M at that time which was convertible into Helios and Matheson shares. To fund these losses, Helios and Matheson has resorted to the aforementioned toxic financing which started last year. Helios and Matheson's thesis that consumers are gullible people, who will eventually stop seeing movies but forget they’re paying for the service while providing Helios and Matheson additional sources of revenue, just isn’t paying off as a viable business model. It's almost as if consumers will only go through the effort of signing up for MoviePass if they can actually save money overall by doing so. Now with the new $10/month price point which MoviePass started last year, MoviePass appeals to a much wider audience and movie goers have been flocking to MoviePass in droves, pushing the paying subscriber base to over 3M subscribers.but Moviepass still loses money. In past years, MoviePass charged much higher prices and catered to heavy users but consistently couldn't make a profit. MoviePass itself is a great deal for consumers who can watch virtually an unlimited number of movies at theaters for around $10/month. The continuing share dilution doesn't appear to be anywhere near finished. ![]() Helios and Matheson which briefly hit $38/share nine months ago, has been clobbered since then, and is down another $0.03 today to $0.22/share. ![]() Helios and Matheson has been selling convertible debt and the resulting share dilution has decimated its share price. MoviePass, arguably the most successful crowdfunding effort to provide free money to movie fans, is continuing to hemorrhage cash while parent company Helios and Matheson is funding those losses by relieving investors of their cash. ![]()
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