The subscription service has hit a financial rough patch.
Helios and Matheson Analytics, the parent company of MoviePass, has recently filed a registration statement with the SEC to raise nearly $1.2 billion in equity and debt securities for the next three years.
The funding will inevitably help the costly operations of MoviePass, MoviePass Ventures, MoviePass Films and Moviefone, which was previously owned by Verizon Communications subsidiary Oath.
However, it remains uncertain whether or not Helios and Matheson Analytics will be able to persuade investors to dish out over a billion dollars for their entertainment endeavours. The company's stock tumbled nearly 16% on Monday, losing 26 cents per share, continuing a fiscal trend that began months ago.
The company reportedly had $15.5 million in available cash at the end of April, as well as $27.9 million on deposit with merchants. An independent auditor believes that there is "substantial doubt" in Helios and Matheson Analytics' ability to sustain MoviePass and turn around a respectable profit.
Moreover, Cinemark and AMC have both recently launched subscription-based services that will effectively pose a threat to MoviePass as the American public is given more options with more exclusive perks.