A few days ago, we ran a report that theater chain stocks got a boost from the "better than expected and okay for a pandemic" box office of Wonder Woman 1984. Even Regal Cinemas, whose 500+ locations are all closed, was up $.02. However, AMC Theatres was the odd man out in that they went down when everyone else went up. AMC has been in trouble for a while now; they pledged to remain open despite the second wave being on the way, and they have said more than once that they are going to run out of money very soon. Earlier this month, they raised $100M from an investment firm, but that the Warner Bros. decision will make the ongoing pandemic even harder. Now they are getting ready to sell more stock to try and keep the lights on, according to The Hollywood Reporter.
AMC Theatres mentioned a "proposed maximum offering price" of $2.50 per share, meaning the proposed maximum offering price would reach $124.75 million. It also listed a $13.6 million registration fee.
"We intend to use the net proceeds from the sale of the Class A common stock offered by this prospectus for general corporate purposes, which may include the repayment, refinancing, redemption or repurchase of existing indebtedness or capital stock, working capital, capital expenditures and other investments," AMC Theatres said in its filing.
If AMC goes under, it isn't just the loss of countless theaters but thousands of jobs in a time when money is already extremely tight for people. The vaccine is on the way, but things are not going to get better soon. We are still months away from the COVID-19 pandemic being under control, so we can't go back to normal because the idea of a short term strict lockdown, wearing masks, and social distancing is apparently like asking people to walk over broken glass Die Hard style.
That isn't even getting into the people who fail to understand the vaccine got made quickly because scientists were essentially written a blank check, and that's how efficient these things can move when begging for funding is taken off of the table. Your Aunt on Facebook frantically posting with the location services turned on memes about masks and how the COVID vaccine will inject a tracker into us. We need to do better, and we need to tell the people around us to do better. I do not want to write a story about thousands of innocent theater workers losing their jobs if AMC goes under. I'm so god damn sick of writing stories about good people losing their jobs. Wear a mask, social distance, and just do better.