The AMC Empire 25 close to Instances Sq. is open as New York Metropolis’s cinemas reopen for the primary time in a 12 months following the coronavirus shutdown, on March 5, 2021.
Angela Weiss | AFP | Getty Pictures
Shares of AMC Leisure surged once more on Tuesday after the theater chain offered greater than 8 million shares to an funding agency, the most recent in a collection of capital raises for the struggling firm turned meme inventory.
AMC mentioned in a securities submitting that it raised $230.5 million by way of a inventory sale to Mudrick Capital Administration. The corporate mentioned it could use the funds for potential acquisitions, upgrading its theaters and deleveraging its stability sheet.
Shares had been up 7% in premarket buying and selling.
AMC’s enterprise was successfully halted through the pandemic, with film theaters shut in a lot of the nation for months and main studios delaying releases through the pandemic. Nevertheless, the inventory grew to become a favourite of merchants on Reddit and has seen wild swings in latest months.
The shares doubled final week on extremely excessive quantity because the speculative exercise by retail merchants pushed by the message board ramped again up as soon as once more.
The corporate has taken benefit of these worth surges by promoting further shares to lift money. The inventory is up greater than 1,000% 12 months to this point.
Tuesday’s transfer additionally follows a bounce-back weekend for film theaters within the U.S., with “A Quiet Place Half II” setting the very best opening weekend gross sales for the reason that begin of the pandemic.
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