AMC Theatres Eyes Selling Up to $124.75 Million in Stock

The exhibition giant had previously warned that it could run out of cash by early 2021.
Cinema giants AMC theaters have registered t0 50 million additional shares for sale up to $ 124.75 million to make it through the coronavirus epidemic.

In Wednesday’s regulatory filing, the company said it could sell shares of a common stock “from time to time” in addition to the 200 million shares it had registered.

AMC theaters noted a “proposed maximum offering price”

of $ 2.50 per share, meaning that the proposed maximum price would reach $ 124.75 million. It also listed a $ 13.6 million registration fee.

“We intend to use the net proceeds from the sale of Class A common stock offered by this prospectus for general corporate purposes, which may include existing indebtedness or capital stock, working capital, capital expenditures, and repayments or repurchases. Other investments, “AMC Theaters said in its filing.

The company had previously warned that it could run out of cash by early 2021. “In the absence of additional liquidity, the company anticipates that current cash resources will be depleted during January 2021,”

it said in a December 11 filing, highlighting Warner’s Bros. potential domino effect. Its entire 17-picture 2021 film Slate transferred to its HBO Max streaming service, marking their day and date with their theatrical release.

The filing stated that “the challenges of the epidemic have been intensified due to the announcement by Warner Bros. its entire studio film will be simultaneous release for 2021, resulting in other studios adopting a similar strategy.”

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