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Up to May MoviePass
Stock in Helios and Matheson ( HMNY ) The parent company of the Movie subscription, has plunged more than 50% Monday amid new reports that customers had problems with the application, which charges $ 10 a month for the opportunity to see a movie every day.
The stock fell to 98 cents a share on Monday, raising new concerns about its possible delisting from the Nasdaq stock market.
This is exactly the problem that the company tried to avoid last week when it approved a 250-for-1 stock split, which pushed up the price from 8 cents per share to $ 21. The last days of trading have essentially erased this cosmetic improvement.
Related: MoviePass could not pay movie tickets Thursday
Helios and Matheson's problems worsened further last Friday, when he borrowed $ 5 million to pay for his processors. He took the loan due to a service breakdown on Thursday that left MoviePass unable to pay for the movie tickets, according to a regulatory filing.
The service was back on Friday afternoon, but again had problems with this weekend. MoviePass tweeted Saturday night that some users had reported archiving problems, adding that it "was working to solve this technical problem." Electronic ticketing remains functional, depending on the service.
Related: MoviePass introduces higher prices
Some users have reported additional complaints, including the inability to obtain tickets for "Mission: Impossible – Fallout", the biggest opening of the weekend.
On Twitter, MoviePass told a customer that the movie "Mission: Impossible" would be available in theaters using its electronic ticketing service. The company added that the film "will also be available at some point in theaters during its theatrical run and without a peak price depending on the demand."
The model of "peak price" of the company has also been criticized by users. When the price of power surges was announced last month, MoviePass told users that we could ask them to pay a "small fee" to see the movies that were in high demand.
Some customers, however, have reported additional fees of up to $ 8 on the movies – almost as much as the cost of the monthly base price of the service.
CNNMoney (New York) First published on July 30, 2018: 1:08 PM ET
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