AMC Entertainment Holdings Inc AMC shares are falling. The company on Monday provided a business update highlighting recent sales of AMC Preferred Equity Units APE.
What Happened: AMC said it has raised approximately $162.4 million by selling 125.9 million preferred shares since inception of the APE units.
"At a time when one or more of our competitors have been facing potentially devastating liquidity challenges, by contrast during the past 90 days, AMC has been able to raise $162 million of additional cash through the sale of equity thereby improving our own liquidity position markedly. In addition, AMC reduced debt for the third time this year, including most recently by buying back debt at a substantial 61% discount," said Adam Aron, CEO of AMC.
"Our outlook for the industry is positive as we expect the box office will be larger in 2023 than in 2022," Aron added.
What Else: The opening weekend of "Avatar: The Way of Water" came in below box office expectations, suggesting consumers are reigning in spending amid continued inflation concerns.
The Avatar sequel pulled in $134 million at the domestic box office during its opening weekend. Industry analysts were anticipating opening weekend sales closer to $175 million and Disney had provided estimates ranging from $135 million to $150 million, per CNBC.
Related Link: Disney Stock Is Sliding Today: What's Going On?
AMC Price Action: AMC has a 52-week high of $21.08 and a 52-week low of $4.78.
The stock was down 8% at $4.89 at time of publication, according to Benzinga Pro.
Photo: Dave Dugdale from Flickr.
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