Movie theater chain AMC is hoping to raise $125 million in fresh capital to stave off bankruptcy by promoting 50 million shares in a brand new funding round, the corporate stated Wednesday.
The largest cinema chain in the world raised $104 million earlier this month after promoting roughly 38 million of 200 million in obtainable shares. The firm is making an attempt to shore up its stability sheet to face up to the extended financial downturn as the coronavirus pandemic drags right into a second yr and threatens the viability of the film trade.
Earlier this month, AMC obtained a $100 million funding from Mudrick Capital Management, however the cash-strapped cinema chain nonetheless wanted at the least $750 million of further liquidity to fund money necessities via 2021.
The firm has reiterated in a number of SEC filings that bankruptcy is a risk if the corporate can't raise extra funds.
"We intend to use the net proceeds from the sale of the Class A common stock offered by this prospectus for general corporate purposes, which may include the repayment, refinancing, redemption or repurchase of existing indebtedness or capital stock, working capital, capital expenditures and other investments," the corporate stated in the Wednesday submitting.
While the Covid-19 disaster has battered theaters since March, maybe no theater chain has been hit tougher than AMC. The firm headed into the pandemic with almost $5 billion in debt, which it had amassed by outfitting its theaters with luxurious seating and from shopping for opponents such as Carmike and Odeon.
AMC has been targeted on fundraising for months. It already renegotiated its debt to enhance its stability sheet this yr and is exploring a number of choices for added liquidity. It can be making an attempt to determine methods to enhance attendance even as the outbreak worsens throughout the U.S.
Shares of the corporate have been down by round 6% in noon buying and selling Wednesday and have slumped by 70% since January.
AMC and Cinemark Q3 losses present the pandemic's toll on theatersEarnings Rundown
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