Helios and Matheson Plan to Spin Off Moviepass

Chris Lange

Helios and Matheson Analytics Inc. (NASDAQ: HMNY) shares shot up late on Tuesday after the company announced that its Board of Directors preliminarily has approved a plan to create a vertically integrated film production, marketing and exhibition company.

To do this, Helios and Matheson would create a new subsidiary named MoviePass Entertainment Holdings that would take ownership of the shares of MoviePass Inc. and other film related assets held by Helios and Matheson.

The company is endeavoring to create MoviePass Entertainment Holdings as a separate publicly traded holding company that would contain the following four assets:

  • the shares of common stock of MoviePass Inc. (“MoviePass”), the nation’s leading movie theater subscription service, held by HMNY, which currently comprise approximately 92% of the outstanding shares (excluding options and warrants) of MoviePass,
  • the membership interests of MoviePass Films LLC (“MoviePass Films”), HMNY’s movie production company partnered with Emmett Furla Oasis Films, held by HMNY, equal to 51% of the outstanding membership interests of MoviePass Films,
  • the membership interests of MoviePass Ventures LLC (“MoviePass Ventures”), an acquirer and owner of economic interests in completed films, held by HMNY, equal to 100% of the outstanding membership interests of MoviePass Ventures, and
  • Moviefone, a multimedia media information and advertising service.

Ted Farnsworth, Chairman and CEO of HMNY, commented:

For many years, HMNY has been focused on data analytics, and in that capacity we own assets like Zone Technologies which provides a safety and navigation app for iOS and Android users and a global security concierge service. Since we acquired control of MoviePass in December 2017, HMNY largely has become synonymous with MoviePass in the public’s eye, leading us to believe that our shareholders and the market perception of HMNY might benefit from separating our movie-related assets from the rest of our company.