Troubled movie subscription service MoviePass looks like its found itself in yet another problem, according to a recent filing with the SEC. This morning, MoviePass parent company Helios and Matheson Analytics was delisted from New York’s NASDAQ exchange for failing to keep a stock price consistently above one dollar for over thirty days. Helios and Matheson, trading under HMNY, has been consistently between valued in the 1-5¢ share price range for over six months. The company did try a reverse share split last year to stave off a previous delisting, but it looks like in the end even that effort was futile.
NASDAQ gave notice that HMNY would have to removed from the exchange in late December. Despite the company’s attempt to prevent a removal during an appeals meeting with the exchange on January 31, their plea was unsuccessful. On February 11, NASDAQ notified HMNY would be removed from their market two days later, on February 13.
With nowhere left to go, the company is now trading over-the-counter with OTC Markets. As for the future of MoviePass, and the question of whether or not it can become a profitable service…that still hasn’t been answered, but the odds are looking worse and worse. This latest change isn’t a positive sign for anyone involved with the company, as stock sales have been consistently used to hold prop up the service’s persistent losses. Trading on a much smaller exchange means less opportunities to raise new funding through sales.