- MoviePass has repeatedly said it’s not worried about sustaining further losses because it has a $ 300 million “equity line of credit” that could keep it going for over a year.
- Financial experts, however, say the financial instrument described by MoviePass CEO Mitch Lowe is not what is generally considered to be an equity line of credit and is subject to the whims of the public market.
- To access that money, MoviePass will have to convince investors of its long-term viability and potential for profit.
- On Wednesday, MoviePass’ parent company, Helios and Matheson Analytics, was trading at an all-time low of $ 0.46, down more than 98% from its 52-week high, with a market cap under $ 39 million.
Don’t worry, everything is fine.
That has been the message from MoviePass and its parent company, Helios and Matheson Analytics, in recent weeks as the company’s financial health has become a topic of heated debate.See the rest of the story at Business Insider
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- Insiders say MoviePass is both a blessing and a curse to independent movie theaters