AMC Theaters is heading out to raise another round of cash to keep its doors open as the coronavirus pandemic continues to ravage the industry.
AMC filed documents with the Securities and Exchange Commission on Monday that it intended to raise $47.7M to keep its theaters afloat. The company plans to accomplish this in part by selling $20M in shares at a price of $2.39 per share. It states in the filing “the impact of the COVID-19 virus on us, the motion picture exhibition industry and the economy in general, ongoing fallout from the COVID-19 pandemic” and “our ability to obtain additional liquidity and our ability to continue as a going concern.”
The company warned investors on Oct. 20 that it may have to file Chapter 11 bankruptcy if it couldn’t raise more funds. The week before that it had warned that it could potentially deplete its cash reserves before the end of 2020.
The company reported a $906M loss in the most recent quarter due to the issues of the coronavirus pandemic. It is the largest theater chain in the U.S. with 634 locations and 8,043 screens. This weekend’s largest film was Come Play which generated $3.15M from 2,183 screens, or $1,429 per screen. That is simply not enough to keep most theaters open if that is the highest performing movie of a weekend.
With no rapid end to the pandemic in sight, this is doubtful to the last of these announcements that we hear.