AMC shares rise after company raises over $900M, rules out immediate bankruptcy talks

NEW YORK – JUNE 21: Pedestrians passed an AMC movie theater in Times Square on June 21, 2005 in New York City. (Photo by Mario Tama/Getty Images)

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UPDATED 5:30 PM PT – Monday, January 25, 2021

AMC shares spiked by nearly 40% on Monday amid the company’s announcement it had raised $917 million in equity and debt. According to the AMC’s chief executive, the new funding will stave off any talks of imminent bankruptcy.

AMC reportedly brought in over $500 million by issuing more than $164 million new shares as part of efforts to raise new capital.

“So basically, if you think that at some point through vaccination and other means, infection and vaccination, a significant portion of the public will be allowed to and interested in returning to the theaters, that AMC makes a lot of sense because you can borrow money for very inexpensively and you can buy it at a ridiculously low price,” Max Wolff, managing partner at Systematic Ventures said.

DENVER, COLORADO – AUGUST 20: Aidan Stout at the AMC Highlands Ranch 24 on August 20, 2020 in Highlands Ranch, Colorado.  (Photo by Tom Cooper/Getty Images)

This came after shares of AMC had fallen by nearly 50% over the past year before Monday.

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Author: KT1

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