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AMC’s stock soared on Monday after the company revealed that it had secured sufficient funding to remain open and operational until 2021.
“This means that any talk of an impending AMC bankruptcy is completely out of the question,” said CEO Adam Aron.
Since December 14, the world’s largest cinema chain has raised $ 917 million in new shares and debt capital, the company revealed on Monday in a SEC filing.
About $ 500 million of this fundraising came from the issuance of new common shares and an investment agreement with Mudrick Capital Management. The company also signed $ 411 million pledge letters of incremental debt capital for upsizing and refinancing its European revolving credit line.
The company’s stock rose more than 35% in the pre-market. The stock fell 48% from last year, bringing its market value to $ 564 million.
“Looking ahead, for AMC to succeed in the medium term, we will need a large portion of the general public in the United States and abroad to be vaccinated,” said Aron. “We welcome the commitment of the new Biden administration and other national and international governments to a comprehensive vaccination program.”
The cinemas were hit hard by the pandemic. First, they were closed due to the increase in cases and then, when they reopened, viewers hesitated to return. Theaters hope that the flow of new Hollywood content, the reduction of Covid-19 cases and the increase in vaccines will give consumers the confidence to return.
To date, about 21 million vaccines have been administered. However, the U.S. is still registering at least 170,000 new Covid-19 cases and at least 3,080 virus-related deaths each day, based on an average of seven days calculated by CNBC using data from Johns Hopkins University.
Last week, there were a number of delays in the film. The latest James Bond film, “No Time to Die” by MGM, was postponed from April to October, Sony’s “Ghostbusters: Afterlife” was moved to November and Sony’s “Morbius” and “Uncharted” came out to 2022.
Disney also changed half a dozen films, including “The King’s Man” at the end of the year or removed them entirely from the calendar.
The few films left in February and March are linked to streaming releases. Warner Bros. ′ “Tom and Jerry” hits HBO Max and theaters on February 26, Disney’s “Raya and the Last Dragon” opens in theaters and Disney + for $ 30 on March 5, and Warner Bros. ′ “Godzilla v. Kong” hits HBO Max and theaters on March 26.