AMC Entertainment Raises $325.5 Million through Stock Sale
AMC Entertainment Holdings Inc. has successfully raised $325.5 million by selling 40 million shares. This move aims to address the cash crunch faced by the movie-theater industry as it rebounds from the impact of the pandemic.
The Offering Details
- The offering began on September 6th.
- The cinema chain sold the stock at an average price of $8.14 per share.
- AMC Entertainment has been struggling with weak box office sales since the pandemic hit.
Adam Aron, the Chief Executive Officer of AMC, expressed his satisfaction with the successful stock sale. He stated that raising over $325 million in gross proceeds has strengthened the company’s ability to not only survive but also thrive.
The stock sale was met with disapproval from AMC investors due to its dilutive effect. As a result, the company’s shares have declined by almost 80% this year. However, Aron believes that AMC is now in a better position to benefit from the recovery of the industry, especially with the upcoming Taylor Swift concert film in October.
Weathering Hollywood Strikes
AMC also stated that the funds raised through the stock sale will help them navigate through the ongoing Hollywood strikes involving writers and actors.
Adam Aron further emphasized that the capital infusion provides flexibility for AMC to continue delivering the magic of movies to their guests and overcome the challenges ahead.
With the successful stock sale, AMC Entertainment has raised significant funds to address its cash crunch and withstand the impact of the pandemic. The company is optimistic about the industry’s recovery and is ready to provide an enjoyable movie experience to its guests.
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