By Jill Goldsmith
Co-Business Editor
AMC Entertainment shares rallied as the company completed a previously disclosed equity offering, raising about $325.5 million of new capital.
The company said it sold 40 million shares at an average price of approximately $8.14 per share.
The move significantly boosts AMC’s cash reserves, addresses current liquidity concerns, and fortifies the balance sheet, AMC said. When coupled with the third quarter to-date 39% surge in industry from last year and massive presales of Taylor Swift: The Eras Tour coming in October, proceeds from offering will let AMC “continue along its successful recovery glidepath through changing market dynamics, including the ongoing strikes by writers and actors, and capitalize on opportunities to further strengthen its balance sheet.”
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Shares are up 9% in pre-market trading.
CEO Adam Aron said the capital raise “has bolstered our ability to survive and then thrive. As we navigate the recovery phase of our industry, this infusion of capital provides us with flexibility to assist us in navigating the waters ahead and continue delivering the magic of movies to our guests.”
Shares are up 9% in pre-market trading.
In a post on X, formerly Twitter, Aron was blunt, saying, “This material increase to our cash position means that any talk of immediate and imminent financial collapse right now by AMC is moot.
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