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. 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. CNN Sans ™ & © 2016 Cable News Network.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. Market holidays and trading hours provided by Copp Clark Limited. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account The stock was up about a half cent Tuesday. The state is looking into whether Helios misled investors about its finances. The New York attorney general is investigating Helios, a source familiar with the probe confirmed to CNN Business last week. Helios said in the news release that the spinoff is subject to several conditions, including the completion of audited financial statements of MoviePass entertainment and the approved listing of shares of the new company on Nasdaq or another trading market. Now the stock is trading at about 2 cents - and that’s after the company approved a reverse split to boost the price 250-fold earlier this summer. Helios and Matheson stock was trading at an all-time high of nearly $39 a share in October 2017. He added that Helios shareholders and the “market perception” might benefit by spinning off all the company’s movie-related assets. Since Helios gained control of MoviePass last year, the company “largely has become synonymous with MoviePass in the public’s eye,” Helios CEO Ted Farnsworth said in a news release.

That includes MoviePass, as well as a film division, a venture unit and Moviefone, which Helios bought from Verizon earlier this year. MoviePass would be spun off as its own company, and it would include all of the parts of the business that are associated with movies and entertainment. Helios and Matheson ( HMNY) announced Tuesday that its board of directors has preliminarily approved a plan to create a new subsidiary called MoviePass Entertainment Holdings.

The parent company of MoviePass wants to spin off the movie subscription business as a separate public company.

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