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Shares of AMC Leisure Holdings (NYSE:) plummeted greater than 12% on the market open Thursday after the corporate introduced it has entered an fairness distribution settlement price as much as $250 million.
“In accordance with the phrases of the Distribution Settlement, we could, by our gross sales brokers, provide and promote every now and then our Class A typical inventory having an mixture providing value of as much as $250M,” it mentioned within the prospectus.
AMC employed Citigroup, Barclays, B. Riley Securities, and Goldman Sachs as its gross sales brokers.
The cinema theater operator mentioned it intends to make use of the proceeds from the providing for a number of functions, together with enhancing liquidity, paying down or refinancing present money owed, and assembly normal company necessities.
AMC’s liquidity was adversely affected by a weak first-quarter field workplace. This downturn partly stems from the Writers Guild of America and Display Actors Guild-American Federation of Tv and Radio Artists strikes final yr.
Furthermore, larger seasonal working capital wants and subsequent money depletion have additionally influenced this resolution.
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