Having been greatly affected by the ongoing coronavirus pandemic and various social distancing and lockdown measures throughout 2020, America’s largest theater chain AMC now says the company will need $750 million USD in cash in order to survive through the coming year.
In order to increase liquidity, the company has now filed for the sale of another 50 million shares, adding to the 200 million already being offered. Selling at an average price of $2.81 USD per share, AMC has managed to raise $104 million USD since December 28, but has nonetheless warned investors that if it doesn’t manage to obtain the amounts required, there will still be a risk of bankruptcy.
“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,” the filing writes.
Stock prices for AMC dropped five percent Wednesday morning following the announcement.
Elsewhere in business-related news, Amazon is acquiring independent podcast network Wondery.