Subscription service startup MoviePass has raised $65 million from undisclosed sources.
the funding comes at a crucial time for the startup which has faced numerous challenges this year including teetering on the brink of bankruptcy early in July.
“We’re still here, and we’re not going anywhere,” Ted Farnsworth CEO of Helios & Matheson which owns MoviePass told TheWrap CEO Sharon Waxman on Tuesday during entertainment-media conference TheGrill in Los Angeles.
Farnsworth said MoviePass had controlled its spending since switching in August to a three-movie-per-month plan for $9.95.
“People are going to less than one movie a month,” Farnsworth said at the event, per The Wrap. “So technically subscription alone right now is doing just fine, now it’s tacking on all the other things on top of it.”
Farnsworth was alluding to the acquisition side of the company, which recently co-acquired the titles “Monsters and Men” and “Border” with the distribution company Neon through MoviePass Films.
However, the threat of being delisted from the Nasdaq is still looming over Helios and Matheson, as its stock was at $0.01 as of Wednesday. If it continues to trade below $1 until mid-December, the delisting process will begin.
On October 18, Helios and Matheson will hold a special meeting with stockholders on approval of an amendment for a one-time reverse stock split at a ratio up to one share for 500 shares.