Photographer: Dan Brouillette / Bloomberg
Photographer: Dan Brouillette / Bloomberg
AMC Entertainment Holdings Inc. is considering raising money by selling more shares, capitalizing on the unprecedented build-up of its shares this week, according to people familiar with the matter.
Following the sale of shares, AMC on Monday announced new funding of $ 917 million, which helped it avoid the threat of bankruptcy. Wednesday said it completed a previously announced market equity program, raising $ 305 million.
AMC has benefited from a Reddit-fueled investment frenzy that has sent very short stocks into the stratosphere this week. Although shares fell on Thursday, hurt by Robinhood and other trading platforms holding back its stock trading, AMC remains at 307% this year.
Reuters He previously reported that AMC was considering another fundraising effort, which could help the besieged theater chain overcome the Covid-19 pandemic or reduce its debt burden.
In major markets such as New York City and Los Angeles, movie chains have been unable to reopen locations. On Monday, AMC said fourth-quarter attendance fell about 92 percent in the U.S. and 89 percent internationally from a year earlier, burning cash at about $ 124 million a month.
The company has previously said it could seek more financing and some creditors we suggested you sell more shares to pay off the debt.
“With the merger, they have to start removing their capital structure,” Jason Mudrick, who received a combination of bonds and shares last month in exchange for providing $ 100 million, told Bloomberg earlier. new funding. “AMC should register more shares, sell as many shares as they can and use the money to pay off the debt.”