AMC Entertainment Holdings Inc AMC shares are trading higher by 6.7% to $8.79 Thursday morning after the company announced it completed its at-the-market equity offering of 40 million shares and raised roughly $325 million.
Why It Matters
Per the company, AMC's recent completion of the ATM equity offering has substantially improved its cash reserves, addressed liquidity concerns and reinforced its financial position.
The company says this capital infusion, combined with a 39% increase in industry box office performance during the third-quarter and the success of the TAYLOR SWIFT THE ERAS TOUR concert film, positions AMC for continued recovery amidst changing market conditions, including ongoing labor strikes.
AMC CEO Adam Aron expressed the importance of this capital raise in providing flexibility for the company's journey to recovery in the film industry.
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"The successful completion of this equity offering marks another significant milestone for AMC. Raising more than $325 million in gross proceeds has bolstered our ability to survive and then thrive," Aron stated.
"As we navigate the recovery phase of our industry, this infusion of capital provides us with flexibility to assist us in navigating the waters ahead and continue delivering the magic of movies to our guests," Aron concluded.
According to data from Benzinga Pro, AMC has a 52-week high of $103.90 and a 52-week low of $7.05.
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