MoviePass’s parent company is getting crushed after offering new stock

Helios and Matheson Analytics is looking to push additional capital into its prime and wildly popular asset, MoviePass, by raising money in a new stock sale that appears to be giving Wall Street fits.

Looking to raise additional capital, Helios and Matheson said it would sell up to $150 million in a stock sale that essentially seems geared to fund MoviePass’s expansion. Helios and Matheson is the largest shareholder of MoviePass, which is an increasingly popular service for going to watch movies. MoviePass’s parent company saw a sharp decline in its stock price today, with its value dropping around 40% as a result of the announcement.

“Helios and Matheson may use the net proceeds from this offering to increase the Company’s ownership stake in MoviePass…

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