AMC Entertainment is no longer on the verge of bankruptcy after it raised $917 million via debt and equity over the past month, the company said in a statement on Monday.
The announcement led to a 37% surge in shares of AMC on Monday, with the highly shorted company joining the ranks of GameStop, BlackBerry, and Bed Bath & Beyond in posting eye-popping rallies over the past week.
AMC raised $506 million from the sale of 164.7 million new common shares, and secured $411 million in incremental debt that is in place through mid-2023, according to the statement.
The company believes its current cash pile has extended its financial runway "deep into 2021," based on certain assumptions and expected future attendance levels.
Much of AMC's assumptions on future attendance levels is predicated on a swift rollout of vaccines to the general population.
Advertisement
"For AMC to succeed over the medium term, we are going to need for much of the general public in the U.S. and abroad to be vaccinated," CEO Adam Aron said.
NewsletterSIMPLY PUT - where we join the dots to inform and inspire you. Sign up for a weekly brief collating many news items into one untangled thought delivered straight to your mailbox.