AMC Looks to Issue 25 Million More Shares After 2,300% Rally


(Bloomberg) — AMC Entertainment Holdings Inc. is asking traders to authorize a further 25 million new shares, aiming to capitalize on a rally that has despatched the inventory of the ailing movie-theater chain up about 2,300% this yr.

The proposal introduced Thursday in a submitting will probably be put to a vote on the firm’s July 29 annual assembly. The fairness at this time can be valued at $1.three billion, although the corporate promised not to subject the brand new shares in 2021.

“To successfully navigate the road ahead, we seek to assemble all of the financial tools that might help us,” Chief Executive Officer Adam Aron mentioned in an announcement. “An important tool for any company is having shares available to issue.”

The request is probably unsurprising for an organization that’s turn into the king of meme shares, on the coronary heart of a frenzy of on-line merchants decide to pump up its valuation.

Still, it’s a significant retreat from a request earlier this yr to authorize 500 million new shares. That proposal was initially up for a vote in May, however the annual assembly was postponed and the request withdrawn after it grew to become clear traders would shoot it down.

Read extra: AMC Takes Traders on a Wild Ride, Pockets $587 Million

Aron mentioned in April the struggling firm might subject about 43 million new shares. With gross sales of latest inventory totaling greater than $800 million simply this week, AMC has now accomplished almost all of that authorization, in accordance to the submitting.

In a YouTube interview Thursday, Aron mentioned proceeds from one other fairness sale, if accredited, can be used to scale back debt, assist the corporate negotiate with landlords who’re owed $400 million, and to chase acquisitions “hard.”

”It’s our view that we’re strengthening the corporate,” he mentioned. “We’re not hurting the company.”

(Updates with CEO’s feedback from YouTube interview beginning in penultimate paragraph.)

More tales like this can be found on bloomberg.com

Subscribe now to keep forward with essentially the most trusted enterprise information supply.

©2021 Bloomberg L.P.



Source link