The owner of MoviePass spikes after Citadel discloses a stake

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Markets Insider

MoviePass owner Helios and Matheson is doing something it haven’t done in five days – gaining ground.

Shares are up more than 6% Tuesday morning after Citadel Securities disclosed a 5.4% stake in the embattled company. Citadel Securities is a market maker, so the stake may not be the vote of confidence some may think it is.

Helios and Matheson had been reeling in recent weeks amid concerns over its survival.

In mid-April, an internal auditor said there was “substantial doubt” the company would be able to stay in business. A few weeks later, the company said it burns about $21.7 million a month, and that its shrinking cash pile is down to $15.5 million.

MoviePass’ leadership has suggested the company will climb its way out of the hole by using its $300 million “equity line of credit.”

Helios and Matheson is still down 93.96% on the year.