There’s no backing out now. In exchange for increased financing, MoviePass locked in its future with Helios and Matheson Analytics Inc HMNY and waived any rights to terminate the purchase agreement, according to a press release.
Helios and Matheson will issue institutional investors $100 million in convertible notes to pay off $5 million owed to MoviePass and increase its stake with an additional $20 million through a previously reported Investment Option Agreement.
“This investment should allow us to further augment our data science capabilities and platform to respond to the needs of studios and exhibitors and their challenges in better understanding their customers,” MoviePass CEO Mitch Lowe said in a press release.
Investors will prepay $15.65 million over the next seven weeks, and the notes will be convertible at $12.06.
The deal has been a major boon for Helios and Matheson shareholders, who saw the stock spike more than 1,000 percent after the firm first acquired a majority stake in August. Shares have since waned, partly inspired by a Citron Research short report.
Although down from its mid-October peak of $32.90, shares now trade up 267 percent, with Monday’s news catalyzing a 10.5-percent pre-market run to $10.66.
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