AMC Entertainment Holdings (NYSE:AMC) said it has raised over $325 million through an at-the-market equity offering.
In a press release, the company announced that it has raised $325.5 million in fresh capital by selling 40 million shares at an average price of approximately $8.14 each.
AMC's shares soared over 8% in premarket trading on Thursday.
The substantial injection of capital is a much-needed boost to AMC's financial health at a time when the company is grappling with cash flow challenges and liquidity issues.
In addition to the fresh capital, AMC has seen a significant uptick in industry box office revenues, with a 39% increase quarter-to-date compared to the previous year. This surge is attributed in part to the record-breaking success of the 'Taylor Swift: The Eras Tour' film.
AMC CEO Adam Aron called the funding “another significant milestone” for AMC.
“Raising more than $325 million in gross proceeds has bolstered our ability to survive and then thrive."
But this recent stock sale of 40 million common shares has been met with mixed reactions from investors, as it is seen as dilutive and has contributed to an 80% drop in AMC's share price over the course of the year. Nonetheless, AMC is optimistic about its prospects in a recovering industry, especially with the upcoming Taylor Swift concert film and the ability to weather ongoing Hollywood strikes.