How far can MoviePass fall?
Stock in [ The parent company of the movie supply service crashed more than 50% on Monday as new reports were submitted that customers had problems with the app that charges $ 1 )
The stock fell 98 cents a share on Monday, raising new concerns that it may be delisted by the NASDAQ Stock Exchange.
That's exactly what the company wanted to avoid last week, when it approved a reverse stock split at a ratio of 250 to 1, raising the price from 8 cents per share to $ 21. The last few days of trading have essentially nullified this cosmetic improvement.
Related: MoviePass could not afford to pay movie tickets on Thursday
The problems of Helios and Matheson got worse last Friday when they lent $ 5 million to their dealers and Fulfillment processors to pay. It took out the loan due to a service outage on Thursday that made MoviePass unable to pay for movie tickets, according to a legal filing.
The service was back on Friday afternoon, but had problems again this weekend. MoviePass tweeted late Saturday night that some users had reported checking-in issues and added that they "are working towards solving this technical problem." E-ticketing will work depending on the service.
Related: MoviePass Introduces Price Escalation
Some users reported additional complaints, including the inability to get tickets to "Mission: Impossible – Fallout," the biggest movie opening of the weekend.
On Twitter, MoviePass told a customer that the movie "Mission: Impossible" will be available in movie theaters using their e-ticketing service. The company added that the film "will someday also be available in theaters during its theatrical run and without peak prices depending on demand".
The company's "peak pricing" model has also been criticized by users. When surge pricing was announced last month, MoviePass told users that they could be asked to pay a "small additional fee" to watch movies that were in high demand.
However, some customers have reported additional costs of up to $ 8 for movies – almost the same as the basic monthly price of the service.
CNNMoney (New York) First published July 30, 2018: 1:08 PM ET