FOX Business Flash top headlines for March 15
Here are your FOX Business Flash top headlines for March 15.
As AMC Entertainment works toward a full recovery from the COVID-19 pandemic, CEO Adam Aron has announced the movie theater chain is making a "bold diversification move" by purchasing a stake in gold and silver miner Hycroft.
Hycroft, which owns a more than 70,000-acre mine in northern Nevada that contains approximately 15 million ounces of gold and 600 million ounces of silver, was taken public in 2020 through a merger with special-acquisition purpose company Mudrick Capital Acquisition Corporation.
The SPAC is backed by Mudrick Capital Management founder Jason Mudrick, who invested $100 million in AMC in December 2020 to help keep the company afloat during the coronavirus pandemic, according to the Wall Street Journal. AMC also raised $230.5 million by selling 8.5 million shares to Mudrick in June.
DOW JUMPS 600 POINTS, OIL SLIDES TO $96 OFF 27% FROM PEAK
Under the terms of the deal, AMC and precious metal investor Eric Sprott are each investing $27.9 million in cash in Hycroft in exchange for 23.4 million units, with each unit consisting of one common share of Hycroft and one common share purchase warrant.
The units are priced at $1.19 per share, which complies with the minimum bid price required by Nasdaq for an at-the-market purchase. Each purchase warrant is exercisable for one common share of Hycroft at a price of $1.07 per share and will carry a five-year term from the date of issuance.
|AMC||AMC ENTERTAINMENT HOLDINGS INC||14.49||+0.94||+6.90%|
|HYMC||HYCROFT MINING HOLDING CORPORATION||1.52||+0.13||+9.35%|
Following the closing of the deal, which is expected to occur on Tuesday, Sprott and AMC will become the Hycroft's second largest stockholders, each holding approximately 21.8% of the company's outstanding common shares. With its investment, AMC has been granted the right to appoint a representative to Hycroft's board of directors.
CLICK HERE TO READ MORE ON FOX BUSINESS
In the first nine months of 2021, Hycroft recorded a net loss of $41.3 million. In a Securities and Exchange Commission filing in November, Hycroft warned it would need to raise additional cash to meet its financial obligations over the next year. In addition, the company ceased its mining operations in western Nevada but noted it would continue producing gold and silver from ore.
Hycroft said it intends to use the proceeds of the deal for general corporate purposes, including "repayment, refinancing, redemption or repurchase of existing indebtedness, working capital or capital expenditures and other investments, advancement of the Initial Assessment in the 2022 Technical Report Summary to a pre-feasibility and/or feasibility study and additional exploration at the Hycroft Mine."