AMC Entertainment Raises $428M In New Capital From Sale Of 43M Shares
Top movie theater circuit AMC Entertainment said it has raised $428 million in new capital from the sale of 43 million shares at an average price of $9.94.
The company announced the results of the sale, which followed a plan laid out in an April 27 SEC filing. In April, the company announced the at-the-market stock sale plan and said it was ditching plans to boost the number of shares by 500 million the total number of authorized shares.
The capital raise “will immediately buttress and fortify our liquidity profile,” CEO Adam Aron said, and “puts AMC in a stronger position to tackle the challenges and capitalize on the opportunities that lie ahead.”
The reversal prevented a major stock overhang, which investors have greeted with enthusiasm. Shares were up 16% in mid-day trading, at about $12.
AMC has managed to survive after being on the brink of bankruptcy numerous times. Its entire circuit was shuttered for months due to the coronavirus pandemic and has only been back open in top markets like New York and LA for a month or two. The company’s debt levels remain high and there are plenty of skeptics out there, especially after its stock took a wild ride along with shares of GameStop and other meme stocks.
Aron has repeatedly saluted the retail investor optimism about the company, describing it as a validation of the company’s efforts to stay solvent.
When the company announced its quarterly earnings last week, Aron quoted Winston Churchill (a favorite inspiration) in detailing his strategy to Wall Street analysts. He cited Churchill’s WWII line, “This is not the end. It not even the beginning of the end. But it is perhaps the end of the beginning.” Aron added, “Sir Winston won his titanic fight. I believe that AMC will win our war too.”
Read More About:
Source: Read Full Article