It pays to be popular on Reddit.
AMC Entertainment announced Tuesday it will raise $230.5 million by selling 8.5 million shares to hedge …
It pays to be popular on Reddit. AMC Entertainment announced Tuesday it will raise $230.5 million by selling 8.5 million shares to hedge fund Mudrick Capital, saying it plans to use the cash to “go on offense” by pursuing opportunistic acquisitions across the virus-ravaged movie-theater sector. The deal with Mudrick values AMC stock at $27.12 a share, valuing the company at upwards of $13 billion — a remarkable number for a stock that had dropped to $4 six months ago as its business was on the brink of bankruptcy amid nationwide COVID-19 lockdowns. “With this agreement with Mudrick Capital, we have raised funds that will allow us to be aggressive in going after the most valuable theatre assets, as well as to make other strategic investments in our business and to pursue deleveraging opportunities,” AMC Chief Executive Adam Aron said in a statement.
