The movie theater chain is on the comeback trail.
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AMC Entertainment Holdings stock jumped to $12.77 on Thursday after announcing it raised over $400 million through a 43 million share at-the-market equity offering, reports Barron’s. Individual investors on Reddit and social media chatted up the #AMCSqueeze hashtag all day.
CEO Adam Aron talked up AMC’s hype on Reddit’s WallStreetBets forum. The online trading discussion group made headlines last January after buying up AMC stock and making huge bets on companies like GameStop, which hedge funds had shorted.
“Just go on Twitter, just go on Reddit, just go on YouTube, read what these people write,” Aron said. “They love AMC. And these are not people who are just going to be investors in AMC. These are going to be customers of AMC who come to our theaters and enjoy watching movies at our theaters as paying guests.”
AMC has struggled during the pandemic with closed theaters and viewers opting for streaming services. Some on Wall Street questioned whether the company could recover.
Aron says the new equity capital will help the company’s liquidity.
“The additional cash raised puts AMC in a stronger position to tackle the challenges and capitalize on the opportunities that lie ahead.”
The cash also comes at a crucial time — as pandemic restrictions ease, according to reports.