(Bloomberg) — AMC Entertainment Holdings has raised $325.5 million in the sale of 40 million shares, a move it says will ease its financial woes as the movie theater industry rebounds.
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The offering, which began Sept. 6, averaged $8.14 a share, the cinema chain said in a statement Wednesday. The company, which has lost money since the pandemic ravaged the industry, is struggling with box office sales.
“Raising more than $325 million in total revenue has strengthened our ability to survive and then thrive,” CEO Adam Aaron said in a statement.
The share sale was unpopular with AMC investors due to its dilutive effect, and the shares have fallen nearly 80% this year. But AMC is now in a better position to benefit from an industry recovery, Aaron said. The company expects to get a separate boost from filming Taylor Swift’s concert in October.
The stock sale will help AMC deal with an ongoing strike by Hollywood writers and actors, the Leawood, Kansas-based company said.
“This combination of capital gives us the flexibility to navigate the waters ahead and continue to deliver the magic of film to our guests,” Aaron said.
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