AMC (AMC) inventory jumped as a lot as 9% in early buying and selling on Thursday after the theater chain introduced it obtained roughly $325.5 million of recent fairness capital by means of the sale of 40 million shares.
The corporate mentioned Wednesday the completion of the fairness providing, which initially led to risky inventory swings amid investor issues over share dilution, “considerably boosts AMC’s money reserves,” along with “addressing present liquidity issues” as the corporate works to strengthen its steadiness sheet after the pandemic hammered its enterprise.
“The profitable completion of this fairness providing marks one other vital milestone for AMC,” President and CEO Adam Aron mentioned in an announcement. “Elevating greater than $325 million in gross proceeds has bolstered our means to outlive after which thrive.”
“As we navigate the restoration section of our business, this infusion of capital offers us with flexibility to help us in navigating the waters forward and proceed delivering the magic of films to our company,” he continued.
The information comes as AMC has loved lofty field workplace gross sales following the blockbuster debuts of “Barbie” and “Oppenheimer” this previous summer season — an encouraging signal of a theatrical bounce-back.
The opening weekend of the 2 movies, which rapidly turned generally known as “Barbenheimer,” led to AMC’s finest single-day efficiency since earlier than the pandemic.
In its most up-to-date quarter reported on August 8, AMC beat Wall Avenue expectations on each the highest and backside strains after reporting income of $1.35 billion and adjusted earnings of $0 a share. It was the primary time the corporate didn’t report an adjusted loss per share for the reason that fourth quarter of 2019.
Nonetheless, income lagged pre-pandemic outcomes by about $150 million in comparison with Q2 2019. Attendance ranges additionally dropped in comparison with the identical time interval, down 30%.
The continuing Hollywood strikes will seemingly add to challenges after Warner Bros.’ (WBD) delayed its “Dune” sequel to March 2024 after initially scheduling the movie for November 2023.
However the chain does have one theatrical occasion to sit up for — Taylor Swift’s Eras Tour film.
The pop star confirmed final month a movie model of her present will debut in theaters, starting on October 13. AMC known as it the “theatrical occasion of the Millennium” as different theater giants like Imax (IMAX) and Cinemark (CNK) are additionally anticipated to see a lift.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Observe her on Twitter @allie_canal, LinkedIn, and e mail her at alexandra.canal@yahoofinance.com.
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