One of the most cash-starved companies on the market,AMC Entertainment Holdings(NYSE:AMC)is thankfully getting a bucket of the green stuff. The movie-theater chain operator announced Thursday that it has completed its LATEST secondary stock issue, which has raised gross proceeds of around $428 million. (That amount is before the deduction of commissions and fees.)
The flotation was announced late last month. The company delivered on its pledge to issue 43 million new Class A common shares in an at-the-market equity program. On average, the shares sold for $9.94 apiece. In its original announcement, AMC said the issue would be more than sufficient for its cash needs for the remainder of 2021.
The company quoted its CEO Adam Aron as saying: "Bringing in an additional $428 million of new equity capital will immediately buttress and fortify our liquidity profile. The additional cash raised puts AMC in a stronger position to tackle the challenges and capitalize on the opportunities that lie ahead."
For many, AMC is a poster child for companies that were devastated by the coronavirus pandemic, especially since it was (and remains) entirely dependent on movie-theater attendance. While the company has done an admirable job keeping itself solvent in these extremely trying times, it's hardly out of the woods yet. The trend of releasing high-profile, first-run films on streaming services is likely to continue, with many viewers opting to forgo the cinema experience in favor of their living rooms.
Still, there's a wave of optimism sweeping over the company -- many believe it can be a significant post-outbreak success story. That, combined with the infusion of new cash, drove the company's stock nearly 24% higher on Thursday, well higher than the S&P 500index's 1.2% increase.
