MoviePass Not Working Again, May Skip Offering Tickets For Big Upcoming Movies
Basically, the company has no money left.
MoviePass recently came under fire because of money issues which kept some people from being able to purchase Mission Impossible: Fallout tickets on opening night last week. Now, after the company said the issue was resolved, the app isn't working for some people again, and the company appears to be facing serious financial issues.
Social media is blowing up with reports that the MoviePass app is down again. It doesn't appear to be working in most major theaters, and the company's costumer service Twitter page hasn't been updated in several hours. We tested the app ourselves in North Hollywood, and it appears as though MoviePass doesn't have access to theaters where you can normally buy tickets.
Now, Business Insider is reporting that the company may not offer tickets to big movies at all in the future. CEO Mitch Lowe only officially said that the app won't have access to Christopher Robin or The Meg, but this has implications for the future of the service as well.
Unfortunately, these problems don't appear to be an accident. MoviePass' parent company Helios and Matheson Analytics Inc. implemented a 1-for-250 reverse stock split last week as prices dwindled. Despite those efforts, the stock is currently trading at $0.80 a share, and if the price stays below $1 per share for more than a month, it may be kicked off the Nasdaq.
Market Watch reports that the company has essentially been hemorrhaging cash, and disclosed in April that its average cash deficit was $21.7 million from September 2017 to April 2018. It also disclosed that an auditor had "substantial doubt" about the company's ongoing viability.
After the problems the company had last week, MoviePass released a statement apologizing for the outage and painting a positive picture of the future despite a rising number of restrictions. That future has now definitely been called into question.
It's unclear whether MoviePass will make it out of this unfortunate situation, but one insider reportedly told Deadline, "I think they're done."
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