MoviePass is running out of money and needs to raise $1.2B

&gt; But the company loses money when its customers use a pass, because it must pay theaters for the tickets.<p>This is some dotcom bubble 1.0 level stuff, &quot;we&#x27;ll sell at a loss and make it up in volume&quot;.<p>&gt; Previous SEC filings revealed that the company was burning through an average of $21.7 million every month operating MoviePass. In May it blew through $40 million.<p>With zero growth to their customer base another $1.2 billion would last them 30 months. But if all goes according to plan they could lose this much faster:<p>&gt; The service recently passed 3 million subscribers, and is trying to draw in more as part of the plan to stay afloat. Executives want to reach 5 million members by the end of the year, a number they say should help make the business profitable.<p>Who would be crazy enough to invest?

An article was just posted on HN titled “Why does your company deserve more money?” What could their answer possibly be?<p>Most people only care about the widely released movies. AMC has the $19.99 Stubs A Plus plan where you can see up to three movies a week, any format, you don’t have to jump through hoops, and you can buy in advance. I’m sure the other chains are going to follow suite.<p>From what I have read, AMC is accounting for each movie that you see as a ticket being sold at $8.99 and they give the movie studio 45-65% of the “ticket price”. They also have 65% profit margins on concessions. AMC can do it profitable. Movie Pass, can’t.<p><a href="https:&#x2F;&#x2F;www.marketwatch.com&#x2F;story&#x2F;the-spectacular-rise-and-fall-of-moviepass-2018-07-09-101033943" rel="nofollow">https:&#x2F;&#x2F;www.marketwatch.com&#x2F;story&#x2F;the-spectacular-rise-and-f...</a>

We lose money on every sale, but we make it up in volume.

The parent company of MoviePass Helios and Matheson around October of last year was trading at highs of $30. Myself and a friend were exuberant saying it was a great short. Should have taken the short position... $HMNY is now trading at 18 cents a share. See the chart <a href="https:&#x2F;&#x2F;yhoo.it&#x2F;2N30F0B" rel="nofollow">https:&#x2F;&#x2F;yhoo.it&#x2F;2N30F0B</a>