AMC Entertainment Holdings (AMC) said it has raised more than $325. million after successfully completing a share sale aimed at consolidating the financially troubled cinema chain operator.
Key Takeaways
- AMC raised over $325 million in 39;a stock sale that began on September 6.
- The movie theater chain sold 40 million shares at an average price of $8.14 per share.
- AMC CEO Adam Aron said the money strengthened the company's ability to “survive and thrive.” 34;
AMC said it sold 40 million shares at an average price of about $8.14 each in the at-the-market offering, which launched Sept. 6.
The company explained that the money “significantly increases AMC's cash flow.” reserves, addresses current liquidity problems and strengthens its balance sheet. CEO Adam Aron added that the sale “strengthened our ability to survive and thrive.”
AMC also noted that It had enjoyed a 39% year-over-year increase in box office revenue so far in the third quarter, and that it 39;expects an increase in sales thanks to the highly anticipated “Taylor Swift: The Eras Tour” concert. the film is expected to be released next month.
The stock sale was the last AMC's effort to stay afloat. Last month, the company won court approval to convert its AMC Preferred Equity (APE) shares into common stock, then initiated a 1-for-10 reverse stock split.
Shares of AMC Entertainment Holdings rose in trading began Thursday for the fourth straight day and were up 2.5% as of 11:45 a.m. ET after falling to an all-time low last Friday.
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Source: investopedia.com