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AMC seeks stock sale to raise $50 million to stave off bankruptcy


An individual wears a protecting face exterior the AMC 34th Street 14 movie show as town continues Phase Four of re-opening following restrictions imposed to sluggish the unfold of coronavirus on July 31, 2020 in New York City.

Noam Galai | Getty Images Entertainment | Getty Images

AMC, starved for money, is wanting to promote up to 20 million class A shares to safe practically $50 million in new capital, in accordance to an SEC submitting revealed Monday.

Shares of the corporate — the world’s largest cinema chain — fell practically 7% in early buying and selling Monday. The firm is ready to report quarterly earnings Monday afternoon.

The submitting is simply the most recent fundraising try by AMC. Like others within the business, the corporate has been slammed by the coronavirus pandemic. First it was compelled to shutter tons of of theaters, after which after reopening, noticed clients keep house and main Hollywood blockbusters delay their openings.

Last month, AMC warned buyers that its dwindling money pile may push it to file for Chapter 11 bankruptcy.

Heading into the pandemic, AMC already had $4.75 billion in debt, which it amassed from outfitting its theaters with luxurious seating and from shopping for rivals like Carmike and Odeon.

The cinema chain has been centered on fundraising for months. It has already renegotiated its debt to enhance its stability sheet this yr and has been exploring a wide range of methods to enhance its liquidity.

At a most providing value of $2.39 every, promoting 20 million shares would raise $47.7 million for AMC.

The firm wants to maintain on lengthy sufficient for brand spanking new content material to arrive in theaters. The subsequent huge characteristic is “The Croods: A New Age” which is slated for Thanksgiving. Theater chains are holding out hope that “Free Guy” and “Wonder Woman 1984” maintain their December launch plans. Without these new movies moviegoers will not enterprise away from their couches.

AMC and different theaters have been hemorrhaging cash so as to keep afloat. Last month, AMC launched a preliminary earnings report that stated the corporate had earned round $119.5 million in income in the course of the three-month interval ended Sept. 30. That’s a steep fall from the $1.32 billion achieve AMC tallied throughout the identical interval final yr.

For the primary 9 months of 2020, AMC stated it took in income of $1.08 billion, a fraction of the $4.02 billion a yr earlier.



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