Due to the adverse effects that the theater industry has suffered due to the 2020 COVID-19 pandemic, alongside lockdown and social distancing regulations, AMC, which is the largest theater chain in the U.S. has released a statement saying that the theater company will be requiring a total of $750 million USD for them to survive the course of 2021.
With the goal of increasing their liquidity, AMC has currently filed to sell an additional 50 million shares on top of the previously offered 200 million shares. The overall share cost is averaged at $2.81 USD per share in AMC with $104 million USD having been raised since the 28th of December. Although AMC has cautioned investors that if the required funds aren’t raised, AMC will remain at risk of bankruptcy.
The filing made by AMC reads as follows: “Our ability to obtain additional liquidity, which if not realized or insufficient to generate the material amounts of additional liquidity that will be required until we are able to achieve more normalized levels of operating revenues, likely would result with us seeking an in-court or out-of-court restructuring of our liabilities, and in the event of such future liquidation or bankruptcy proceeding, holders of our common stock and other securities would likely suffer a total loss of their investment,”
As of Wednesday, AMC stock prices tanked a total of 5% after the announcement was made.
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