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Cinema giant AMC Theatres has registered up t0 50 million additional shares for sale to raise up to $124.75 million to make it through the coronavirus pandemic.
In a Wednesday regulatory filing, the company said it could sell the shares of Class A common stock “from time to time” in addition to 200 million shares previously registered.
AMC Theatres mentioned a “proposed maximum offering price” of $2.50 per share, meaning the proposed maximum offering price would reach $124.75 million. It also listed a $13.6 million registration fee.
“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,” AMC Theatres said in its filing.
The company previously warned that it could run out of cash in early 2021. “In the absence of additional liquidity, the company anticipates that existing cash resources will be depleted during January 2021,” it had said in a Dec. 11 filing, which also highlighted a possible domino effect from Warner Bros. shifting its entire 17-picture 2021 film slate to its HBO Max streaming service, premiering them day-and-date with their theatrical release.
Pandemic challenges “have been exacerbated by the announcement by Warner Bros. that its entire studio film slate for 2021 will move to simultaneous release, which may result in other studios adopting a similar strategy,” that filing had said.
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