In order to help its subsidiary survive, Helios and Matheson unraveled a $164 million bond sale for MoviePass.

MoviePass, a company that allows customers to see a movie a day for just $10 a month, has struggled significantly since Helios and Matheson purchased it in 2017. Although MoviePass has three million customers, the company faces significant long-term dangers.

Further, after its Q1 reporting, MoviePass revealed that it has roughly $15.5 million in cash and $28 million in bank deposits. However, its monthly expenses value at a steep $21.7 million, which has grown apprehension over the company’s sustainability. Because of these concerns, Helios and Matheson has seen its stock plummet 99% (!!!) in less than a year, falling to $0.32 since its high last October. The company must pull its stock price up to $1 to remain part of the Nasdaq.

Plus, external competition is also hurting the movie-subscription company. Cinemark and AMC both recently released their own movie-subscription services. Although AMC’s offering is a tad pricier at $20, it also brings more perks, including the ability to reserve tickets in advance and acquire tickets to 3D movies.

Nevertheless, MoviePass is doing what it can to stay afloat. It recently started distributing its own movies, including recent crime-drama film “American Animals,” which has raked in almost $755,000 in the box office since its premier on June 1. This figure is nothing to sneeze at, as it doesn’t even crack the top 100 of 2018, but it’s a solid start for a new movie distributor.

The company has its work cut out for them, but the combination of summer movie popularity, additional funding, and new movie distribution, Helios and Matheson may be able to turn MoviePass around.

Featured image via Flickr/Bill Smith