MoviePass Service is Down. Company Out of Cash, Borrows $5 Million

ManaByte · Jul 27, 2018

The MoviePass outage was caused by the company temporarily running out of cash, and it borrowed $5 million to turn the service back on

In a Securities and Exchange Commission filing on Friday, the owner of MoviePass, Helios and Matheson Analytics, disclosed that it had borrowed $5 million in cash following a "service interruption" on Thursday because the company was unable to make certain required payments.

In other words: On Thursday it ran out of cash, at least temporarily.

"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."

As of Friday morning, many MoviePass subscribers still couldn't use the full functionality of the app.

Helios and Matheson borrowed the cash from Hudson Bay Capital Management, according to the filing. The total demand note was for $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.

Apparently E-Ticketing may work. Can't pay with a credit card as that's down (likely because the processing costs them money per transaction).

GK86 · Jul 27, 2018

https://www.resetera.com/threads/mo...r-movie-tickets-on-thursday-7-26.58221/unread

ColdSun · Jul 27, 2018

Thread locked as an existing thread covering the topic already exists.

MoviePass Service is Down. Company Out of Cash, Borrows $5 Million

ManaByte

Attempted to circumvent ban with alt account

GK86

ColdSun

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