The theater industry has taken quite a hit during the COVID-19 pandemic that has essentially shut down the movie industry. On Monday, AMC announced that it is raising $47.7 million in cash to stay open, according to a Securities and Exchange Commission filing.
Shareholders of the theater chains took a hit as shares were down 8.5% to $2.15 in trading Monday. The S3 filing, which seeks to sell $20 million shares at a price of $2.39 per share, said the risks include
“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.”
With 659 locations in the U.S, AMC is the largest theater chain in the country and if closed studios would be left with fewer distribution options. As of Monday, New York City, Los Angeles and San Francisco remain closed due to the health crisis, and many reopened exhibitors are limiting hours.
