An individual wears a protecting face exterior the AMC 34th Road 14 movie show as town continues Part Four of re-opening following restrictions imp
An individual wears a protecting face exterior the AMC 34th Road 14 movie show as town continues Part Four of re-opening following restrictions imposed to sluggish the unfold of coronavirus on July 31, 2020 in New York Metropolis.
Noam Galai | Getty Photographs Leisure | Getty Photographs
AMC, starved for money, is trying to promote as much as 20 million class A shares to safe almost $50 million in new capital, in keeping with an SEC submitting revealed Monday.
Shares of the corporate — the world’s largest cinema chain — fell almost 7% in early buying and selling Monday. The corporate is ready to report quarterly earnings Monday afternoon.
The submitting is simply the most recent fundraising try by AMC. Like others within the business, the corporate has been slammed by the coronavirus pandemic. First it was compelled to shutter a whole bunch of theaters, after which after reopening, noticed prospects keep residence and main Hollywood blockbusters delay their openings.
Final month, AMC warned buyers that its dwindling money pile may push it to file for Chapter 11 chapter.
Heading into the pandemic, AMC already had $4.75 billion in debt, which it amassed from outfitting its theaters with luxurious seating and from shopping for opponents like Carmike and Odeon.
The cinema chain has been centered on fundraising for months. It has already renegotiated its debt to enhance its stability sheet this yr and has been exploring a wide range of methods to spice up its liquidity.
At a most providing value of $2.39 every, promoting 20 million shares would increase $47.7 million for AMC.
The corporate wants to carry on lengthy sufficient for brand spanking new content material to reach in theaters. The following huge characteristic is “The Croods: A New Age” which is slated for Thanksgiving. Theater chains are holding out hope that “Free Man” and “Surprise Lady 1984” maintain their December launch plans. With out these new movies moviegoers will not enterprise away from their couches.
AMC and different theaters have been hemorrhaging cash to be able to keep afloat. Final month, AMC launched a preliminary earnings report that stated the corporate had earned round $119.5 million in income through the three-month interval ended Sept. 30. That is a steep fall from the $1.32 billion acquire AMC tallied throughout the identical interval final yr.
For the primary 9 months of 2020, AMC stated it took in income of $1.08 billion, a fraction of the $4.02 billion a yr earlier.