what happened
Shares of AMC Entertainment (NYSE: AMC) rose Monday after the country’s largest movie theater company said it had raised $ 917 million in shares and debt capital. From 14:45 EST, AMC’s share price rose 30%.
Approximately
AMC’s newfound cash includes $ 506 million from stock sales and $ 411 million from new debt. Management believes these moves will enable AMC to “go through the dark winter with coronavirus.” “Today the sun is shining for AMC,” AMC CEO Adam Aron said in a press release.
AMC Entertainment shares rose after shareholders received hopeful news on Monday. Image Source: Getty Images.
Aron even went so far as to claim that investors no longer have to worry about AMC failing in the short term. “This means that any talk of an imminent bankruptcy for AMC is completely off the table,” Aron said.
Now what
With its balance sheet strengthened, AMC believes it has the cash it needs to fund its operations until ‘deep into 2021’. However, the company warns that it is difficult to predict future cash needs, due in part to the uncertainty associated with rising coronavirus infections and the yet-to-be-determined results of COVID-19 vaccination programs.
“If we look forward to making AMC successful in the medium term, we will have to vaccinate a lot of the general public in the US and abroad,” Aron said.