AMC Theatres Eyes Selling Up to 200M Shares

AMC Theater at Times Square
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The proposed offering could net the exhibitor as much as $834 million, based on its stock trading at $4.17 on the New York Stock Exchange.

Cinema chain AMC Entertainment Holdings is looking to raise more fresh cash to survive the pandemic.

On Thursday, the company in an SEC filing said it was considering selling from time to time, based on market conditions, up to 200 million shares of its common stock. With stock in AMC Entertainment trading at $4.17 in morning trading on the New York Stock Exchange, the proposed offering could be worth as much as $834 million in new liquidity for the mega-exhibitor.

AMC added it intended to use the proceeds from the offering "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 latest cash raise follows AMC warning in earlier filings that it required additional fresh cash to remain in business.

"Our ability to obtain additional liquidity, which if not realized or insufficient to generate the material amounts of additional liquidity that will be required until we are able to achieve more normalized levels of operating revenues, likely would result with us seeking an in-court or out-of-court restructuring of our liabilities, and in the event of such future liquidation or bankruptcy proceeding, holders of our common stock and other securities would likely suffer a total loss of their investment," AMC echoed in its latest regulatory filing with a cautionary note regarding forward-looking statements.

Besides the coronavirus spread shutting down movie theaters, AMC and rival exhibitors have been impacted by major movie releases pushed to 2021 or diverted to streaming platforms.

AMC said it had 108.8 million shares of class A common stock outstanding, and 51.7 million shares of class B common stock outstanding as of Dec. 1.