MoviePass owner says it has a $300 million line of credit and could stay afloat for 17 months without raising more money (HMNY)
Added 05-14-18 06:14:01pm EST - “Ted Farnsworth, CEO of MoviePass' parent company, Helios & Matheson Analytics, says that the company is not slowing down despite the reports that it's losing mi” - Businessinsider.com
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Posted By TheNewsCommenter: From Businessinsider.com: “MoviePass owner says it has a $300 million line of credit and could stay afloat for 17 months without raising more money”. Below is an excerpt from the article.
Ted Farnsworth — the CEO of Helios & Matheson Analytics, the parent company of MoviePass— played off concerns about the company's financial situation while attending the Cannes Film Festival this week.
While speaking with Variety in the South of France, where Farnsworth was on hand for the premiere of "Gotti," the mob movie starring John Travolta that MoviePass is releasing along with Vertical Entertainment, Farnsworth told the trade that despite the company losing around $20 million a month since September, he's "not worried at all."
He said the company had roughly $300 million available from an equity line of credit. "We've got 17 months' worth of cash without further raises of capital," he continued.
The company noted in a filing to the SEC last week that it had $15.5 million in available cash. The line of credit doesn't appear to have been mentioned (Business Insider has reached out for comment on why it was not included). HMNY also said in the filing that recent tweaks to the MoviePass service had led to a reduction of "more than 35%" in its cash deficit during the first week of May.
"It's going to be substantial," Farnsworth said. "People are going to go, 'Hmm, how did they pull it off?'"
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