(Bloomberg) — AMC Entertainment Holdings Inc. raised about $325.5 million through the sale of 40 million shares, a move that it said would address a cash crunch as the movie-theater industry rebounds.
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The offering, which began Sept. 6, sold stock at an average price of $8.14 a share, the cinema chain said in a statement Wednesday. The money-losing company has struggled with weak box office sales since the pandemic ravaged its industry.
“Raising more than $325 million in gross proceeds has bolstered our ability to survive and then thrive,” Chief Executive Officer Adam Aron said in the statement.
The stock sale was unpopular with AMC investors due to its dilutive effect, and its shares have plunged nearly 80% this year. But AMC is now in a better position to benefit from an industry recovery, Aron said. The company expects to get a particular boost from the showing of the Taylor Swift concert film in October.
The stock sale also will help AMC weather the ongoing Hollywood strikes of writers and actors, the Leawood, Kansas-based company said.
“This infusion of capital provides us with flexibility to assist us in navigating the waters ahead and continue delivering the magic of movies to our guests,” Aron said.
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Source: finance.yahoo.com