MoviePass’ owner sinks to a record low as financial struggles linger (HMNY)

pulse

May 22, 2018 5:12 PM

The company revealed earlier this month that it was burning $21.7 million a month, and it said it was down to just $15.5 million in cash. Shares crashed more than 30% on that revelation. Shares have since plunged further and are now below $1, hitting an all-time low of $0.56.

The stock is now trading more than 98% below its October prices.

Shares of Helios & Matheson, the technology company which bought MoviePass in last year, plunged 11% to a new low $0.50 Tuesday morning.

The previous low of $0.55 was set Monday following a week of declines.

Shares of HMNY are now trading at less than 2% of their all-time high, set in October, when the MoviePass acquisition was announced.

The company undefined, and it said it was down to just $15.5 million in cash. Shares crashed more than 30% on that revelation. They have since plunged to fresh lows.

Some of the skepticism surrounding Helios and Matheson most likely stems from comments made by the company's independent auditor, which said the firm faced "undefined" about its ability to stay in business.

However, not everyone is downbeat on the stock. Some millennial investors appear to be buying the dip, with the company rising to the most popular trade on the brokerage app Robinhood, according to data from the brokerage's website. Last week, the stock saw a roughly 7,000 person increase in holdings on the app, bringing it to the app’s top 32 stocks being bought.

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