Photographer: Dan Brouillette / Bloomberg
Photographer: Dan Brouillette / Bloomberg
AMC Entertainment Holdings Inc. consider raising money by selling more shares, and make according to the people familiar with the unprecedented return in its shares this week.
A share sale would follow on AMC on Monday announcing $ 917 million in new financing, which helped prevent the threat of bankruptcy. On Wednesday it is said it had completed a previously announced stock program on the market, which raised $ 305 million.
AMC has taken advantage of an investment frenzy fueled by Reddit, which this week sent heavily shortened shares into the stratosphere. Although the stock fell on Thursday – hurt by Robinhood and other trading platforms restricting the trading of its shares, AMC remains 307% higher this year.
Reuters reported earlier that AMC is considering another fundraising effort, which could help the beleagured theater chain endure the Covid-19 pandemic or reduce its debt.
In big markets like New York and Los Angeles, cinema chains could not reopen places. AMC said Monday that fourth-quarter attendance had dropped 92% in the U.S. and 89% internationally from a year earlier.
The company has previously said it may seek more funding, and some creditors suggested he sell more shares to pay off debt.
“With rallies, they need to start squeezing their capital structure,” Jason Mudrick, whose firm received a combination of bonds and shares last month in exchange for $ 100 million in new financing, told Bloomberg earlier. “AMC needs to register more shares, sell as many shares as they can and use the cash to repay debt.”