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

January 25, 2021 KT1 US 0

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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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–bankruptcy off the table? so says the ceo after big capital raise

— Jim Cramer (@jimcramer) January 25, 2021

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.