MoviePass Is Finally Running Out Of Money
MoviePass wouldn’t let you buy tickets yesterday and needed to borrow $5 million to pay back its partners
Yesterday there were multiple reports of MoviePass unable to pay for moviegoers, tweeting out that they were experiencing technical issues with their card-based check-in process. They promised to be working diligently to resolve the issue but that e-ticketing was still working.
We are still experiencing technical issues with our card-based check-in process and we are diligently working to resolve the issue. In the interim e-ticketing is working. We apologize for the inconvenience and appreciate your patience while we resolve this issue.— MoviePass (@MoviePass) July 27, 2018
What really happened was that the company ran low on funds and had to borrow $5 million in a short-term loan to pay back its partners. It’s parent company Helios and Matheson Analytics filed the loan with the Securities and Exchange Commission on Friday morning. The loan is from a hedge fund called Hudson Bay Capital Management and MoviePass is required to start paying back the loan by next month.
Helios and Matheson Analytics isn’t doing well either. They’ve recently made a massive reverse stock split this week to avoid being delisted by Nasdaq. The stock tanked Friday going from $7 down to $3.58 by mid-morning.
And, of course, the loyal MoviePass fans are scared for their lives, some even saying that they will “die” if the company tanks. Others are saying that America should bail out MoviePass instead of big banking companies. Nearly all of us here at The Sitch use MoviePass on a regular basis and would hate to see the company go under, forcing us to pay upwards of $16 a ticket again here in New York.
DON'T BAIL OUT THE BANKS, BAIL OUT MOVIEPASS— Lindsay Zoladz (@lindsayzoladz) July 27, 2018
There have also been reports earlier today at noon that MoviePass has still yet to be working. As some of us here are looking to go see the new Mama Mia later tonight, we’ll just have to take the risk of whether or not the app will work.
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