AMC shares rise after company raises over $900M, rules out immediate bankruptcy talks
UPDATED 5:30 PM PT – Monday, January 25, 2021
AMC shares spiked by nearly 40% on Monday amid the company’s announcement it had raised $917 million in equity and debt. According to the AMC’s chief executive, the new funding will stave off any talks of imminent bankruptcy.
AMC–bankruptcy off the table? so says the ceo after big capital raise
— Jim Cramer (@jimcramer) January 25, 2021
AMC reportedly brought in over $500 million by issuing more than $164 million new shares as part of efforts to raise new capital.
“So basically, if you think that at some point through vaccination and other means, infection and vaccination, a significant portion of the public will be allowed to and interested in returning to the theaters, that AMC makes a lot of sense because you can borrow money for very inexpensively and you can buy it at a ridiculously low price,” Max Wolff, managing partner at Systematic Ventures said.
This came after shares of AMC had fallen by nearly 50% over the past year before Monday.