Hollis Johnson/Business Insider
Helios and Matheson, the parent of MoviePass, is required to reserve millions of shares of stock as part of a series of debt agreements.
The company's creditors have agreed to reduce the number of shares it has to set aside.
The move could free the company up to sell new shares to the public, something it's done repeatedly to stay in business.
However, the agreement came around the same time that the investment bank that has been selling shares on the company's behalf announced it was cancelling their contract.
MoviePass' parent company just gave itself more wriggle room to issue new shares — at the same time the partner it's used to repeatedly sell new stock to shareholders cancelled their contract.
Helios and Matheson's creditors have agreed to reduce the number of shares the company needs to set aside for notes it issued that can be converted into stock, the company said in a regulatory document filed with the Securities and Exchange Commission on Thursday. Additionally, the company essentially reached an agreement with its creditors to cancel a convertible note deal it agreed to in June, meaning it no longer has to set aside shares for that either.
"Following the consummation of the transactions contemplated by the [agreement], all of the June convertible notes have been cancelled," the company said in the regulatory document.
