MoviePass parent Helios & Matheson Inc. /zigman2/quotes/208158842/composite HMNY -11.11% said Tuesday it raised $6 million in a new round of financing. The company said it plans to use the proceeds from the financing to support its MoviePass subscription business, including accelerating product development, improving its technology and increasing investment in new films. "We are building the infrastructure, data and tools that we believe will power the next generation of MoviePass," said Helios Chief Executive Ted Farnsworth. Under terms of the financing, Helios reached an agreement for the purchase of 60,000 preferred shares by certain institutional investors, which are convertible into about 1 billion shares of common stock and accompanying warrants to by about 60,000 preferred shares. Helios shares plummeted 37% in premarket trade, to below a penny. The stock has lost virtually all of its value over the past 12 months, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.50% has gained 5.3%.