AMC Entertainment (NYSE:AMC) stock has now risen more than +45% in the past trading month and nearly 50% this year-to-date.
The movie theatre chain broke a new weekend high record this past weekend as “Barbenheimer” produced results bigger than anticipated.
“Barbie” ended up with $162 million in its first weekend of release, above Sunday’s already record-breaking estimate of $155 million. The Warner Bros. film, starring Margot Robbie declined just 9% from Saturday to bring in $43.7 million on Sunday.
“Oppenheimer,” also beat expectations with $82.4 million, slightly higher than Sunday’s huge $80.5 million projection.
At the international box office, Oppenheimer added $98 million for a global tally of $180 million.
“The box office powered to its fourth-biggest weekend in history with over $300 million industrywide,” says Variety.
Shares soared higher than +87% last Friday on the announcement that Vice Chancellor Morgan T. Zurn rejected a nine-figure settlement that would have let the conversion proceed while handing out extra stock to mitigate the impact on ordinary shareholders.
“Accordingly, given the absolute imperative to be able to raise equity capital going forward, we take seriously the Court’s Friday ruling.
In response, yesterday we along with the plaintiffs filed with the Delaware Court, a modification of the legal release surrounding the settlement of the Delaware litigation in an effort to address the Court’s voiced concern.
If the Court agrees, it would be our hope to implement as soon as possible the plan approved in the AMC stockholders election in March,” said Adam Aron in a new letter to shareholders.
Is AMC Entertainment Out of The Woods Yet?
AMC Entertainment has demonstrated big progress in the past few years ever since retail investors were able to resuscitate the company from near bankruptcy.
The company has beat earnings expectations ever since 2021 as the movie theatre industry as a whole has begun to recover post-pandemic.
However, according to CEO Adam Aron, AMC Entertainment is not out of the woods just yet, although it has made substantial progress.
The key here is raising enough capital to keep the movie theatre company moving forward before running out of money.
“AMC must be in a position to raise equity capital. I repeat, to protect AMC’s shareholder value over the long term, we MUST be able to raise equity capital.
That is especially the case now with the added uncertainty caused by the writers and actors strikes, which could delay the release of movies currently scheduled for 2024 and 2025.
If we are unable to raise equity capital, the risk materially increases of AMC conceivably running out of cash in 2024 or 2025, or of AMC being unable to satisfactorily refinance and stretch out the maturity of some of our debt (which is required of us beginning as early as 2024.)
The risk of financial collapse is not whimsical. Cineworld/Regal, the second largest movie theatre chain in the world, fell into bankruptcy and their equity holders were essentially wiped out. Bed, Bath and Beyond which was viewed as the third most watched meme stock, also fell into bankruptcy and their equity holders also were essentially wiped out.
Fortunately, at AMC, we have been much smarter, much more agile and much more skillful. We have risen to every Covid challenge heretofore, and I have every confidence in our continued ability to successfully navigate through these complicated times,” Adam Aron said in his latest statement.
For mor AMC stock news and updates, join the newsletter below. More than 10,000 readers have already signed up.
Market News Published Daily 📰
Join the newsletter ⬅️ to receive daily stock market news, business news and updates straight to your inbox; more than 10,000 readers have joined!
THANK YOU to all of our blog sponsors, this year we’ve been able to increase our email sends and signup slots as well as introduce push notifications.
Franknez.com is the media site that keeps retail investors informed.
You can also follow Frank Nez on Twitter, Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.
Become a Sponsor for only $1/mo.
- Gain access to EXCLUSIVE FrankNez articles you won’t find here.
- Become part of a private and safe Discord community, just for retail investors.
- Get drawn at the end of the year for holiday giveaways.
Leave your thoughts below.
Don’t matter if it goes 110% of the current price not near the $72 👎👎👎