Helios and Matheson: MoviePass owner sinks as cash reserves dwindle

Helios and Matheson Analytics

09/05/2018 16:30

** MoviePass-parent's shares  HMNY.O  down more than 30 pct
for second straight session in heavy volumes after warning of
dwindling cash reserves
    ** HMNY said in a filing Tuesday it had $15.5 mln in cash
reserves at end April, while its cash deficit has been $21.7 mln
per month on average from Sept-April (https://bit.ly/2K21uFk)
    ** HMNY says steps to prevent MoviePass holders from sharing
accounts with non-subscribers and allowing only one use per
movie helped reduce cash deficit in first week of May by 35 pct
    ** But, co says cash deficit may vary each month depending
on how much it spends on MoviePass and because of the business's
nature, it cannot estimate how much funds it will require
    ** Says "If we are unable to obtain sufficient amounts of
additional capital ... we may be required to reduce the scope of
our planned growth or otherwise alter our business mode"
    ** Stock last down ~31 pct, mirroring its drop on Monday and
sending the stock to its lowest since Oct. 2011; Trading vol
over past two days nearing free float of 43 mln
    ** Stock soared over 1,000 pct in a month through Oct last
year on the promise of MoviePass  urn:newsml:reuters.com:*:nL4N1M64GQ  urn:newsml:reuters.com:*:nL4N1MZ4OU;
Since then HMNY has slumped ~98 pct

 (Reporting by Savio D'Souza)
 ((RM:savio.dsouza.thomsonreuters.com@reuters.net))