AMC Entertainment Holdings has announced plans to raise $47.7 million in cash to stay open in a Securities and Exchange Commission filing published Monday. The filing comes ahead of a quarterly earnings report later this afternoon.
The filing seeks to sell 20 million shares at a price of $2.39 per share, said the risks include “the impact of the COVID-19 virus on us, the motion picture exhibition industry and the economy in general, ongoing fallout from the COVID-19 pandemic” and “our ability to obtain additional liquidity and our ability to continue as a going concern”.
The chain warned on October 20th that it may have to file for Chapter 11 bankruptcy if it cannot obtain additional sources of liquidity. Last month S&P downgraded the company’’ credit rating from CCC+ to CCC-, moving into the junk bond category.
The move comes as horror movie “Come Play” debuted at the top of the U.S. box-office this past weekend with an utterly woeful $3.15 million.
Source: Variety
