AMC Entertainment Holdings said Thursday it had completed a previously declared “at-the-market” equity sale for forty three million shares.
What Occurred: The film theater chain lifted nearly $428 million in fresh new equity money before using into account commissions and costs at an typical price tag of $9.94 for each share, as for each a assertion.
AMC CEO Adam Aron said, “Bringing in an extra $428 million of new equity money will quickly buttress and fortify our liquidity profile.”
“The extra cash lifted puts AMC in a more powerful placement to deal with the worries and capitalize on the possibilities that lie ahead.”
AMC shares shut 23.seventy four% bigger at $12.77 on Thursday in the standard session and gained .seventy eight% in the soon after-hours session. The stock’s fifty two-week lower is $1.ninety one.
Why It Issues: Previously, AMC abandoned a proposal to concern 500 million new shares, but opted to go ahead with the sale of forty three million shares stating it would be ample to meet its cash needs for 2021.
The chain was hit tough by the ongoing COVID-19 pandemic but is using on hopes of a recovery in film theater attendance in the 2nd 50 % of the 12 months.
Very last week, AMC described to start with-quarter earnings for each share of adverse $1.forty two, lacking the estimate of adverse $1.26. Quarterly income arrived in at $147.4 million, beneath the estimate of $153.61 million.
AMC is regarded as to be a meme stock favored by retail investors and was brief squeezed by the Reddit trader forum r/WallStreetBets. Other meme stocks include GameStop and Nokia.
AMC has attracted 1,648 mentions on WallStreetBets earning it the most reviewed on the forum adopted by GME and Tesla, as for each Quiver Quantitative data.
This story initially appeared on Benzinga. © 2021 Benzinga.com.
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