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After all, AMC Entertainment Holdings (NYSE: AMC) will dilute investors. The cinema operator reportedly abandoned its plan to flood the market with 500 million new shares; instead, it will sell only 43 million new shares.
Executive Chairman Adam Aron told CNBC’s Jim Cramer last week that by doubling the number of inventories in the theater, the company could fill out its bank accounts at a time when inventory is still listed at the highest levels. the influx of inventories, the unfortunate but mandatory collateral damaged AMC a solid monetary base.
However, analysts and shareholders were unhappy with the plan, and the film network board then suppressed the idea, also declaring that it reserved the right to review it in the future.
The new and smaller percentage of currency it provides can still allow AMC to generate gross revenue of approximately $500 million at existing percentage prices. The theater operator stated that the revenue would be for general corporate purposes, adding current capital; cancel, refinance, cancel or re-buy existing debts; capital expenditures or other investments.
AMC also provided an initial review of its first-quarter effects and said it expects to generate cash from $148 million to $941. 5 million last year, with adjusted losses of between $295 million and $302 million at a profit of $3. 1 million a year ago.
That’s more than analysts expected of losing $515 million, even if it didn’t live up to their earnings forecast of an average consensus of $158. 4 million.