MoviePass parent plans to spin it off into separate company

October 23, 2018 - 8:39 am

NEW YORK (AP) — The parent company of MoviePass says that it plans to spin off the discount movie ticket subscription service into a separate public company.

Helios and Matheson Analytics Inc. said Tuesday that the new subsidiary will be called MoviePass Entertainment Holdings Inc. and be a film production, marketing and exhibition company.

Helios and Matheson Chairman and CEO Ted Farnsworth said in a statement that the parent company had become mostly synonymous with MoviePass in the public's eye, which led it to believe it might benefit from a separation.

Last week it was announced that Helios and Matheson is being investigated by the New York Attorney General on allegations that it misled investors.

MoviePass Entertainment is expected to list on the Nasdaq or an alternate trading market.

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