Shares of AMC shot up Monday after the company unveiled that it had secured needed funding to remain open and operational deep into this year.
“Which clearly states that any talk of an immediate bankruptcy for AMC is totally off the table,” announced CEO Adam Aron.
Since the 14th of December, the largest film theater chain in the world has raised 917 million dollars of further equity and debt capital, the company reported Monday in an SEC filing. About 500 million dollars of this fundraising came from the issuance of new shares and an investment settlement with Mudrick Capital Management.
Also, the organization has executed commitment letters for 411 million dollars of incremental debt capital from upsizing and refinancing its European revolving credit facility. The company shares were up to 35 percent in premarket trading. The stock is down 48 percent over the previous year, bringing its market value to 564 million dollars.
“Looking forward, for AMC to succeed, they are going to need for much of public in the United States including abroad to be vaccinated,” Adam remarked. “We welcome the commitment by the new Biden legislation and domestically and internationally to broad-based vaccination plans.”
Cinema theaters have been hit hard by the COVID-19 outbreak. Initially, they were draped because of the rising cases, and then when they resumed, moviegoers were reluctant to return. Multiplexes are hoping that an introduction of new content from Hollywood, declining coronavirus cases, and a rise in vaccinations will give customers some confidence to return. Approximately 21M vaccines have been administered. Nevertheless, the United States is recording at least 170,000 new coronavirus cases and at least 3,080 virus-related deaths every day, based on a 7-day average calculated using Johns Hopkins University data by CNBC.
Last week there was a slew of shoot delays. The latest James Bond flick, MGM’s “No Time to Die,” was driven from April – Oct, Sony’s “Ghostbusters: Afterlife” was pushed to November, and Sony’s “Morbius” and “Uncharted” exited to 2022. Disney shifted a half-dozen movies, including “The King’s Man,” later into the year or expelled them from the calendar completely. Some films that remain in Feb. and March are bound to streaming releases.