With the sale of 40 million shares, AMC Entertainment Holdings Inc. raised roughly $325.5 million, claiming that this will take care of a cash shortage as the movie theater business recovers.

The movie chain released a statement on Wednesday announcing that the offering, which started on September 6, sold stock at an average price of $8.14 per share. The financially struggling corporation has experienced poor box office performance since the pandemic devastated its sector.

Chief Executive Officer Adam Aron said in the release, “Raising more than $325 million in gross proceeds has bolstered our ability to survive and then thrive.”

RELATED: AMC Stock Falls After The Reverse Split Goes Into Effect

Due to the stock sale’s dilution, AMC investors disapproved of it, and the company’s shares have dropped by about 80% this year. However, Aron stated that AMC is now more positioned to gain from an industry rebound. The release of the Taylor Swift concert film in October is anticipated to provide a significant boost for the business.

The Leawood, Kansas-based corporation said that the stock sale will also assist AMC in surviving the current writer and actor strikes in Hollywood.

RELATED: AMC Is Abandoning Its Idea To Charge More For The Top Movie Theater Seats

“This capital infusion gives us flexibility to help us navigate the upcoming waters and keep bringing the magic of movies to our guests,” Aron stated.


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