Photographer: Dan Brouillette / Bloomberg
Photographer: Dan Brouillette / Bloomberg
AMC Entertainment Holdings Inc. he is considering raising money by selling several shares, capitalizing on the unprecedented accumulation of his shares this week, according to people familiar with the matter.
A sale of shares would see AMC announce new $ 917 million in funding on Monday, which helped it escape the threat of bankruptcy. Wednesday said it had completed a previously announced market share program, raising $ 305 million.
AMC benefited from an investment frenzy fueled by Reddit, which sent short-term shares into the stratosphere this week. Although the stock fell on Thursday – hurt by Robinhood and other trading platforms that limit the trading of its shares – AMC remains at 307% this year.
Reuters reported earlier that AMC is considering another fundraising effort that could help the besieged theater chain withstand the Covid-19 pandemic or reduce its debt burden.
In major markets, such as New York City and Los Angeles, movie theater chains have failed to reopen locations. On Monday, AMC said its presence in the fourth quarter fell by about 92 percent in the U.S. and 89 percent internationally from a year earlier and that it was burning cash at about $ 124 million a month.
The company has previously said it may seek more financing from some creditors I suggested he sell more shares to pay off the debt.
“With the rally, it needs to start reducing its capital structure,” said Bloomberg’s Jason Mudrick, whose firm received a combination of bonds and shares last month in exchange for new $ 100 million in financing. . “AMC should register as many shares as possible, sell as many shares as possible and use the money to repay the debt.”