AMC Entertainment Holdings is selling stock to raise $844 million as the exhibitioner scrambles to stay afloat during the coronavirus outbreak.
The Securities and Exchange Commission said AMC’s S-3 filing tells the company plans to sell up to 200 million shares at $4.22 per share. On the New York Stock Exchange, shares plummeted to $3.63, dropping 69 cents in trading. Since September, it’s the fourth time that AMC has declared a sale of stocks to raise funds. On Oct. 20, the embattled chain warned that if it could not obtain extra sources of liquidity it may have to file for Chapter 11 bankruptcy.
“Our ability to obtain additional liquidity, which if not realized or insufficient to generate the material amounts of additional liquidity that will be required until we are able to achieve more normalized levels of operating revenues, likely would result with us seeking an in-court or out-of-court restructuring of our liabilities, and in the event of such future liquidation or bankruptcy proceeding, holders of our common stock and other securities would likely suffer a total loss of their investment,” AMC warned in the latest filing.
The filing arrives as the North American box office clambers to draw moviegoers amidst a disinclination by major studios to relinquish new titles. At 2,200+ theaters with about fifty percent of domestic locations closed still, “The Croods: A New Age” (Universal’s animated comedy) controlled business during the sluggish Thanksgiving holiday weekend raking in $14.3 million. It was the weakest Thanksgiving haulage in recent box office history. With 659 locations, AMC is the largest shower chain in the United States.
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