On Friday, stock for HMNY was trading below $0.07, an all-time low for the company that acquired the movie-theater subscription service last August.
The crash by the HMNY stock follows an awful week and a half for the company. In late July, HMNY CEO Ted Farnsworth expressed optimism to Business Insider that the stock price would stabilize after a reverse split. That didn’t happen. The 1-for-250 reverse stock split got the stock from $0.09 to around $14 last Wednesday. But it has been falling since.
With the stock trading above a dollar last week, it only had to stay at $1 or above for 10 days (and have a market cap of at least $50 million) to stave off the possibility of being delisted from the Nasdaq in mid-December. But HMNY was below a dollar days later as a string of misfortune hit MoviePass.
By the end of last week, the app temporarily shut down, leading to HMNY having to borrow $5 million cash to get it back up and running. Customers also complained that the biggest movie of the weekend, “Mission: Impossible – Fallout,” was not available on the app and that there was across-the-board surge pricing for most of the screening times for available movies.
Following another service interruption to the app over the weekend, this Monday MoviePass CEO, Mitch Lowe, announced in an all-hands meeting that the company was drastically changing how subscribers could use the app as no major blockbusters would be available on the service going forward. On Tuesday, the company revealed that it would be changing its monthly subscription price from $9.95 a month to $14.95 .
Throughout, MoviePass has tried to put on a brave face. On Thursday it released a press release with the header ” We’re Still Standing, ” boasting how important it had been to this year’s impressive domestic box office (which is up around 8% from last year ).
But you only have to glance at what Wall Street is saying Friday to realize the situation is dire.