MoviePass stopped working Thursday night because its parent company reportedly ran out of money.
Helios and Matheson Analytics, which owns MoviePass, disclosed Friday in a new filing to the Securities and Exchange Commission that it borrowed $5 million in cash to bring the app back online, according to Business Insider.
The app couldnt receive ticket orders Thursday night. On Friday, several subscribers still couldnt use the app.
HMNY said in its SEC filing Friday that it borrowed the money after a service interruption disallowed the app from making required payments, Business Insider reported.
"The $5.0 million cash proceeds received from the Demand Note will be used by the Company to pay the Company's merchant and fulfillment processors," the filing said. "If the Company is unable to make required payments to its merchant and fulfillment processors, the merchant and fulfillment processors may cease processing payments for MoviePass, Inc. ('MoviePass'), which would cause a MoviePass service interruption. Such a service interruption occurred on July 26, 2018."
MoviePass tweeted that there was "an issue that is preventing users from checking-in to movies."
The company said it is still experiencing technical issues with our card-based check-in process and we are diligently working to resolve the issue.
E-ticketing is still working, though, according to MoviePass.
HMNY borrowed the money from Hudson Bay Capital Management, according to the filing.
The total borrowing sits at $6.2 million, "which includes $5.0 million in cash borrowed by the Company from the Holder and $1.2 million of original issue discount," it said.
HMNY has owned MoviePass since August 2017. Right after it bought the company, MoviePass lowered its prices to $9.95 per month and offered one movie ticket per day, according to The Verge. This led to a surge in popularity for the app.
Since that time, HMNY and MoviePass have slowly trended toward bankruptcy.
As I wrote for the Deseret News, HMNY said earlier this month that it needs $1.2 billion to stay in business. The company planned to obtain that money from selling stock and debt securities.
The company said it spent $40 million on MoviePass in May, CNN reported.
Back in May, HMNY said the company spends $21.7 million per month on MoviePass, according to my report for the Deseret News. The company said then it only had $15.5 million cash on hand.
Helios and Matheson Analytics, which owns MoviePass, disclosed Friday in a new filing to the Securities and Exchange Commission that it borrowed $5 million in cash to bring the app back online, according to Business Insider.
The app couldnt receive ticket orders Thursday night. On Friday, several subscribers still couldnt use the app.
HMNY said in its SEC filing Friday that it borrowed the money after a service interruption disallowed the app from making required payments, Business Insider reported.
"The $5.0 million cash proceeds received from the Demand Note will be used by the Company to pay the Company's merchant and fulfillment processors," the filing said. "If the Company is unable to make required payments to its merchant and fulfillment processors, the merchant and fulfillment processors may cease processing payments for MoviePass, Inc. ('MoviePass'), which would cause a MoviePass service interruption. Such a service interruption occurred on July 26, 2018."
MoviePass tweeted that there was "an issue that is preventing users from checking-in to movies."
The company said it is still experiencing technical issues with our card-based check-in process and we are diligently working to resolve the issue.
E-ticketing is still working, though, according to MoviePass.
HMNY borrowed the money from Hudson Bay Capital Management, according to the filing.
The total borrowing sits at $6.2 million, "which includes $5.0 million in cash borrowed by the Company from the Holder and $1.2 million of original issue discount," it said.
HMNY has owned MoviePass since August 2017. Right after it bought the company, MoviePass lowered its prices to $9.95 per month and offered one movie ticket per day, according to The Verge. This led to a surge in popularity for the app.
Since that time, HMNY and MoviePass have slowly trended toward bankruptcy.
As I wrote for the Deseret News, HMNY said earlier this month that it needs $1.2 billion to stay in business. The company planned to obtain that money from selling stock and debt securities.
The company said it spent $40 million on MoviePass in May, CNN reported.
Back in May, HMNY said the company spends $21.7 million per month on MoviePass, according to my report for the Deseret News. The company said then it only had $15.5 million cash on hand.
