Noam Galai | Getty Images Entertainment | Getty Images
AMC’s shares rose on Monday after the company revealed it had secured enough funding to remain open and operational until 2021.
“This means that any discussion of an impending bankruptcy for AMC is completely off,” said CEO Adam Aron.
Since Dec. 14, the world’s largest movie chain has raised $ 917 million in new equity and debt, the company revealed Monday in an SEC filing.
Approximately $ 500 million of this fundraiser came from the issuance of new common shares and an investment agreement with Mudrick Capital Management. The company has also executed letters of commitment for $ 411 million in incremental debt capital, by increasing and refinancing its European revolving credit facility.
The company’s shares increased by over 35% in premarket trading. Shares have fallen 48% in the last year, bringing their market value to $ 564 million.
“Looking to the future, for AMC to be successful in the medium term, we will need a large portion of the general public in the US and abroad to be vaccinated,” Aron said. We welcome the commitment of the new Biden administration and other governments nationally and internationally to a large-scale vaccination program.
Cinemas have been hit hard by the pandemic. First they were closed due to increasing cases and then, when they reopened, the diners were reluctant to return. Cinemas hope that an influx of new Hollywood content, a decrease in Covid-19 cases and an increase in vaccinations will give consumers the confidence to return.
To date, around 21 million vaccines have been administered. However, the United States still has at least 170,000 new cases of Covid-19 and at least 3,080 virus-related deaths each day, based on a seven-day average calculated by CNBC using data from Johns Hopkins University.
There were a number of movie delays last week. James Bond’s latest film, “No Time to Die” by MGM, was pushed from April to October, “Ghostbusters: Afterlife” from Sony was moved in November, and “Morbius” and “Uncharted” by at Sony they came out by 2022.
Disney also moved half a dozen movies, including “The King’s Man,” later in the year or removed them completely from the calendar.
The few films that remain in February and March are related to streaming releases. “Tom and Jerry” from Warner Bros. is heading to HBO Max and theaters on February 26, Disney’s “Raya and the Last Dragon” will debut in theaters and Disney + for $ 30 on March 5 and Warner Bros. “Godzilla v. Kong” hits HBO Max and theaters on March 26th.