Last week we told you that you might want to take full advantage of your MoviePass card this month, ’cause it might not be available by the end of June. It was reported that its parent company Helios & Matheson Analytics only had $15.5 million the bank, which was troubling because they had been spending over $20 million a month.
But now the head of Helios & Matheson Analytics, Ted Farnsworth, is speaking out hoping to ease some worried minds.
He claims the subscription service has $300 million available from an equity line of credit…
“There’s been a feeding frenzy of negativity, but it’s not going to slow us down. I’m not worried at all. You’re going to see. We’re doing more acquisitions of movies and companies. We’ve got 17 months’ worth of cash without further raises of capital.”
And we have to believe him, ’cause we’re pretty sure there are laws against lying about this stuff, in order to protect shareholders.
So it looks like MoviePass is (fingers crossed) at least good for another year, and maybe by then they’ll have repaired their relationship with theaters and be able to work out some revenue-sharing deal, which could potentially make the company profitable.[mashshare]