AMC Stock Up 20% in Pre-market, Mudrick Capital Sells All Their AMC Shares for Profit
4 hours ago by Oluwapelumi Adejumo · 3 min read
Photo: James Clear / Flickr
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Even though before COVID-19 hit the world, AMC focused heavily on growing its footprint and upgrading its theaters in order to generate revenue, many expected the pandemic to have changed its approach.
In what is a very surprising move, Mudrick Capital has sold off all of its stock in AMC Entertainment Holdings Inc (NYSE: AMC), a report by Bloomberg News says.
AMC stock has reacted to the news. In the pre-market today, the price is $38.44, which means that it is 19.98% up now.
By Sarah Whitten, CNBC •
Updated 2 hours ago
Angela Weiss | AFP | Getty Images
AMC has pivoted back to an offensive strategy on a bet that its retail investors will stick with the company long enough for it to recoup its pandemic losses.
Since the January stock surge, some retail investors have used social media to attack anyone who shares negative opinions of AMC.
AMC Entertainment made a gutsy move Tuesday. The movie theater chain has pivoted back to an offensive strategy on a bet that its retail investors will stick with the company long enough for it to recoup its pandemic losses.
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AMC Entertainment, owner of the world’s largest theater chain, is eyeing cinema locations previously operated by ArcLight Cinemas and Pacific Theatres.
In a Tuesday filing, AMC Chief Executive Adam Aron said the company is “in discussions” with “multiple landlords” of locations previously operated by the popular Los Angeles-based circuits.
The Leawood, Kan.-based company on Tuesday said it reached an agreement to raise $230.5 million in cash by selling equity to investment firm Mudrick Capital Management, exchanging 8.5 million shares at a price of approximately $27.12 per share.
AMC said it would use the cash to acquire additional theater leases and improve existing locations. The deal differs from AMC’s multiple previous capital-raising efforts during the pandemic, which were intended to keep the company out of bankruptcy court as theaters suffered from closures, restrictions and a lack of new Hollywood movies.
By Sarah Whitten, CNBC •
Updated 2 hours ago
Angela Weiss | AFP | Getty Images
AMC has pivoted back to an offensive strategy on a bet that its retail investors will stick with the company long enough for it to recoup its pandemic losses.
Since the January stock surge, some retail investors have used social media to attack anyone who shares negative opinions of AMC.
AMC Entertainment made a gutsy move Tuesday. The movie theater chain has pivoted back to an offensive strategy on a bet that its retail investors will stick with the company long enough for it to recoup its pandemic losses.