Gasparino: Analyst Greenfield says AMC CEO is encouraging his online harassment
Fox Business’ Charlie Gasparino has the details of the analysts’ claim on ‘The Claman Countdown’
AMC Entertainment Holdings Inc. added to last week’s gains after announcing plans to sell stock to shareholder Mudrick Capital.
The Leawood, Kansas-based movie theater operator agreed to sell 8.5 million shares of Class A common stock to Mudrick for $230.5 million, or $27.12 apiece – a 3.8% premium over Friday’s closing price. AMC shares soared 116% last week and had gained 1,132% this year.
|AMC||AMC ENTERTAINMENT HOLDINGS INC||29.48||+3.38||+12.96%|
AMC intends to use the proceeds from the share sale to acquire additional theater leases and to make enhancements to existing locations.
The company is in discussion with landlords of movie theaters formerly operated by Arclight Cinemas and Pacific Theaters, said CEO Adam Aron.
AMC, REGAL AND CINEMARK WILL NO LONGER REQUIRE MASKS FOR VACCINATED GUESTS
"With our increased liquidity, an increasingly vaccinated population and the imminent release of blockbuster new movie titles, it is time for AMC to go on the offense again," he said in a statement.
News of the share sell was well received by retail investors who have supported the stock amid the attack by shortsellers.
The company said that as of March 11, approximately 3.2 million individual shareholders owned shares, holding about 80% of the 450 million shares outstanding.
The share sale will be the second from AMC in less than a month.
AMC, on May 14, completed the sale of 43 million shares using the cash for general corporate purposes. The company had originally planned to sell up to 500 million shares, but scrubbed the idea after facing backlash from analysts and shareholders.
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AMC last month reported first-quarter revenue plunged 84% year over year as the company was forced to temporarily close its doors due to the COVID-19 pandemic.
As of April 30, AMC was operating approximately 589 of its 593 domestic locations and approximately 110 of its 357 international locations.
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