AMC shares plunge after company announces reverse stock split, capital raise

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DEBT DEBACLE: AMC shares plunge after company announces reverse stock split, capital raise

IMAX CEO Rich Gelfond analyzes the opening weekend numbers for 'Avatar: The Way of Water' after some say the sequel failed to live up to Disney's box office hopes on 'The Claman Countdown.'

AMC Entertainment is tapping an existing investor for new capital and proposing a 1-to-10 reverse stock split, the company announced.will raise $110 million of new equity capital through the sale of APE preferred equity units to Antara Capital.as a special dividend to existing shareholders. Each APE is designed to have the same economic and voting rights as one share of common stock.

"They're going to have to continue to raise capital to service all this debt to survive and it doesn't look that promising," said Thomas Hayes, chair and managing member of Great Hill Capital. At the end of September, AMC's liabilities were $11.79 billion, which included corporate borrowing of $5.2 billion. Cash and cash equivalents were at $684.6 million, a fall from $1.59 billion a year ago.

Moviegoer shops at concessions stands at an AMC theater on reopening day during the outbreak of the coronavirus disease , in Burbank, Calif., Mar. 15, 2021.

 

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