Cash woes push MoviePass offline

MoviePass’ online ticketing service temporarily halted Thursday as the company faced mounting financial pressures.

MoviePass parent company Helios & Matheson Analytics Inc. borrowed $5 million from hedge fund Hudson Bay to get MoviePass back online Friday, according to an SEC filing. With interest, the loan totals $6.2 million.

After the online ticketing service went down Thursday evening, MoviePass initially blamed technical problems but later acknowledged in a tweet that other factors caused the shutdown.

The developments were the latest signs of distress for the New York-based owner of MoviePass.

Some analysts have been skeptical of the sustainability of the company’s business model, in which the company charges a $9.95 monthly fee while paying full price for its users’ tickets. The company hoped to earn money by collecting user data.

Earlier this week, Helios & Matheson executed a 250to-1 reverse stock split so the company wouldn’t be delisted from Nasdaq; companies on Nasdaq must keep their stock value above $1 to avoid delisting.

The reverse split temporarily raised the stock’s value, which was worth a few cents last week.

In June, MoviePass introduced a surge pricing model reminiscent of the way ride-hailing apps such as Uber and Lyft raise prices when demand is higher.

Helios & Matheson’s stock fell $4.83, or 71%, to $2 on Friday. The stock is down 99.9% for the year.

ethan.millman@latimes.com Twitter: @MillmanEthan