AMC’s Hycroft mining company just raised $195 million in only a matter of two weeks!
Corporate media was quick to judge the movie theatre chain’s diversification but as Adam Aron says, let them eat crow!
AMC Entertainment announced on Tuesday, March 15th that it had acquired a 22% stake in Hycroft (HYMC).
Shareholders technically now own silver and gold, but you especially own silver and gold if you’re invested in the company.
HYMC stock is up more than 3% this week but surged almost 22% afterhours on Friday.
Let’s break it down together.
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AMC partners up with billionaire Eric Sprott
Both AMC and billionaire businessman Eric Sprott took a large stake in Hyrcoft (HYMC).
Eric Sprott is known for specializing in precious metals and real assets investing.
He is considered one of the world’s leading gold and silver investors.
Combined, AMC and Mr. Sprott invested $56 million in Hycroft (HYMC), or approximately $28 million each.
CEO and president of AMC Entertainment Adam Aron announced on Friday in a tweet a total of $139 million had been raised in additional equity.
This means AMC’s Hycroft raised $195 million in just two weeks!
The stock soared almost 22% after hours when the announcement was made.
And shareholders are loving the CEO’s moves as a short squeeze could be on the horizon.
HYMC short interest data
HYMC’s current short interest percentage is 49.58%.
If you don’t have a subscription to Ortex don’t worry, I update HYMC’s and other heavily shorted stock’s short interest data daily here.
This is a very high short interest figure for a stock.
When you have a short interest this high it’s possible to squeeze shorts from their positions with momentum.
A sharp increase in price could send short sellers running to close their positions before greater losses accrue.
Hycroft’s utilization rate reached 100 and has bounced between 80-90 in the past few days.
We saw a similar pattern occur last year with AMC before it ran up to $72 per share.
Keep an eye out on this stock.
As the market begins to transition into a bull market, we’re going to see many small and mid-cap size companies gain serious traction.
Are you holding HYMC stock?
Let me know in the comment section below.
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