AMC Continues To Struggle, Selling Even More Shares To Stay Afloat
By Chris Evangelista/Dec. 30, 2020 3:00 pm EST
While we’re all hoping for better things in 2021, don’t expect some sort of miraculous switch to be flipped on January 1. The coronavirus continues to be a real problem in all sorts of ways. Yes, there’s a coronavirus vaccine, but by all accounts, it’s not being distributed as quickly as it should be. As the Washington Post reports, “80 to 85 percent of Americans need to be vaccinated to reach herd immunity,” but, “At the current rate, it would take the United States approximately 10 years to reach that level of inoculation.”
Over the Christmas weekend, Wonder Woman 1984 managed to open in theaters, and did better-than-expected, resulting in the biggest post-pandemic opening for a movie yet. However, that still wasn’t enough, and it was reported that AMC shares were at their lowest point since early November. Today, Deadline has revealed that the theater chain has filed to sell 50 million more shares with hopes of staying afloat. As of December 28, the company has raised $104 million through stock sales, but added that “bankruptcy remains a risk if it can’t continue to raise the funds it needs waiting for the theatrical exhibition business to recover.”
In their filing, AMC said:
“Our ability to obtain additional liquidity, which if not realized or insufficient to generate the material amounts of additional liquidity that will be required until we are able to achieve more normalized levels of operating revenues, likely would result with us seeking an in-court or out-of-court restructuring of our liabilities, and in the event of such future liquidation or bankruptcy proceeding, holders of our common stock and other securities would likely suffer a total loss of their investment.”
