The price for AMC Entertainment shares closed on Friday at $33.96, a drop of almost 50% from its peak of $72.62 only last month. Nonetheless, even at the current level, the exhibitor’s share price has increased more than 1,400% since its low of $1.91 in January when pandemic pressures had driven the company to the brink of bankruptcy.
Over the past several months, AMC has leveraged its suddenly high-flying share price to raise $1.2 billion in new capital from investors through new stock offerings. These resources will be critical in the company’s ability to pay down its substantial corporate debt and ride out the slump in moviegoing caused by the pandemic.
Still, AMC faces several fundamental questions about its future, with studios hedging on their commitment to open their movies at theatres exclusively. AMC may also be challenged to fill seats at their large multiplex locations, with some having as many as 30 screens. However, prospects for this world’s largest exhibitor appear much brighter now than they did at the beginning of the year.