AMC continues to be aiming for a $ 550 million lifeline as its share value closes at a file low
The world’s largest cinema chain is still around $ 550 million away from its fundraising goal.
On Tuesday, AMC CEO Adam Aron said the company managed to raise just over $ 200 million of the $ 750 million it will need to fund its cash needs by the end of this year.
“We need to raise more but we are working hard and we have a plan and blueprint to get there,” he said. “Only time will tell if we get there or not.”
Aron’s appearance on CNBC’s “Closing Bell” comes on the same day that his company’s stock fell to a 52-week intraday low of $ 1.91 per share and closed at a record low of $ 1.98 per share.
AMC has been crippled by the coronavirus pandemic and its stocks reflect investors’ lack of confidence in the immediate recovery of the cinema industry. The company’s shares fell more than 70% in 2020.
The cinemas had to close in mid-March and spent more than six months closed to the public last year. AMC operates around 400 of its almost 600 theaters with limited seating and shorter opening hours. Theaters in New York City and parts of California will remain closed.
The company is currently trying to renegotiate its rental payments with landlords and is looking to cut, cut and deferred. Should the company not be able to secure additional sources of liquidity, it may have to initiate bankruptcy proceedings.
AMC is not eligible for grants from the Save Our Stages Act of $ 15 billion, which is part of the far larger coronavirus aid package of $ 900 billion, as it is a publicly traded company with locations in more acts as 10 states.
AMC went into the pandemic with nearly $ 5 billion in debt, which it amassed by adding luxury seating to its theaters and buying out rivals like Carmike and Odeon.
The company has already renegotiated its debt to improve its balance sheet and received a $ 100 million investment from Mudrick Capital Management in December.
“We cut out our work for ourselves,” said Aron. “We have to raise more money to get to the other side. Still, we’ve done it four times and that’s our focus.”