What's Going On With MoviePass? Spinoff Plan Revealed

Helios & Matheson (HMNY), the owners of subscription service MoviePass, are set to spin the business unit off with a confidential SEC filing.

Under the filing, which was revealed by Deadline, MoviePass would have its own financial structure and still remain under the control of the company. MoviePass would also be traded as a separate entity from Helios & Matheson, which is asking for this approval of as part of the conditions to the spinoff.

Also, part of the SEC filing was the request by Helios & Matheson to be allowed to distribute shares of MoviePass under Delaware law. Current owners that have certain warrants would qualify for distribution, which the company announced Wednesday in a $5.4 million deal that it would sell shares and warrants to investors in the company.

In a statement, Helios & Matheson said it “expects to commence the distribution after the SEC completes its review process and declares the Form S-1 registration statement effective.”

MoviePass has more than 3 million members and recently underwent an overhaul of its subscription services, adding three tiers that provide more access and flexibility to moviegoers.

Shares of Helios & Matheson were up over 1 percent on Thursday afternoon.