AMC Shores Up Its Finances by Raising More Than $325 Million in a Stock Sale

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published September 14, 2023
AMC

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AMC Entertainment Holdings (AMC) said it raised more than $325 million after successfully completing a stock sale aimed at shoring up the financially struggling theater chain operator.

Key Takeaways

  • AMC raised more than $325 million in a stock sale that began Sept. 6.
  • The theater chain sold 40 million shares at an average price of $8.14 per share.
  • AMC CEO Adam Aron said the cash has bolstered the company's ability to "survive and thrive."

AMC said it sold 40 million shares at an average price of approximately $8.14 each in the at-the-market offering, which was launched Sept. 6.

The company explained the money “significantly boosts AMC’s cash reserves, addresses current liquidity concerns, and fortifies its balance sheet.” CEO Adam Aron added that the sale “has bolstered our ability to survive and thrive.”

AMC also noted it has gotten a boost from a 39% year-over-year jump in box office receipts so far in the third quarter, and it anticipates a spike in sales from the much-anticipated “Taylor Swift: The Eras Tour” concert movie set to be released next month.

The stock sale was the latest effort by AMC to stay afloat. Last month, the company won court approval to convert its AMC Preferred Equity (APE) shares into common shares and then initiated a 1-for-10 reverse stock split.

Shares of AMC Entertainment Holdings rose in early trading on Thursday for the fourth consecutive day and were up 2.5% as of 11:45 a.m. Eastern Time after falling to an all-time low last Friday.

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  1. AMC Entertainment Holdings. "AMC Entertainment Holdings, Inc. Successfully Completes At-the-Market Equity Offering, Raising More Than $325 Million, Substantially Increasing Its Financial Resilience."

  2. Delaware Courts. “IN RE AMC ENTERTAINMENT HOLDINGS, INC. STOCKHOLDER LITIGATION.”

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