- Business Insider
- MoviePass owner Helios & Matheson Analytics’ CEO, Ted Farnsworth, said he’s “not worried at all” about the company’s cash situation.
- He said the company had roughly $300 million available from an equity line of credit.
- However, the company’s stock was trading at $0.68 at market close Monday, following a recent drop on concerns about its average monthly cash deficit and available cash.
- Farnsworth also teased an acquisition by the company to be announced in the coming days at the Cannes Film Festival.
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.”
“You’re going to see. We’re doing more acquisitions of movies and companies,” Farnsworth said.
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.
Farnsworth teased a major acquisition by HMNY that will be announced at Cannes in the coming days.
“It’s going to be substantial,” Farnsworth said. “People are going to go, ‘Hmm, how did they pull it off?'”
Perhaps the announcement will change the tune of investors, who have pushed the stock down 98% since its 52-week high in October.