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Shares of AMC jumped on Monday after the company revealed it had secured enough funding to stay open and operational deep into 2021.
“This means that any talk of AMC’s impending bankruptcy is completely out of the table,”
As of December 14, the world’s largest cinema chain has raised $ 917 million in new equity and debt, the company revealed in a SEC statement on Monday.
About $ 500 million of this fundraiser comes from the issuance of new common stock and an investment deal with Mudrick Capital Management. The company has also executed letters of commitment for $ 411 million in additional debt capital from increasing and refinancing its European revolving credit facility.
The company’s shares have risen more than 35% in pre-trading. Shares have fallen 48 percent in the past year to $ 564 million.
“From now on, in order for AMC to succeed in the medium term, we will need a large part of the general public in the United States and abroad to be vaccinated,” Aaron said. “We welcome the commitment of the new Biden administration and other governments at the national and international levels to a comprehensive vaccination program.”
Movie theaters have been hit hard by the pandemic. They were first closed due to growing cases, and then when they reopened, viewers were reluctant to return. Cinemas hope that the influx of new content from Hollywood, the declining cases of Covid-19 and the increase in vaccinations will give consumers the confidence to return.
About 21 million vaccines have been given so far. However, the United States still records at least 170,000 new cases of Covid-19 and at least 3,080 virus-related deaths each day, based on a seven-day average calculated by CNBC using data from Johns Hopkins University.
There were a lot of movie delays last week. MGM’s latest James Bond film, “No Time to Die,” has been moved from April to October, Sony’s “Ghostbusters: Afterlife” has been moved to November, and Sony’s “Morbius” and “Uncharted” have been released in 2022.
Later in the year, Disney replaced half a dozen movies, including The King’s Man, or removed them entirely from the calendar.
The few films that remain in February and March are tied to streaming editions. Warner Bros. “” Tom and Jerry “hits HBO Max and theaters on February 26, Disney’s” Raya and the Last Dragon “will debut in theaters at Disney + for $ 30 on March 5, and Warner Bros.” Kong “hits HBO Max and theaters on March 26.