AMC Entertainment Holdings (AMC) has just announced that the company will be purchasing 22% of Hycroft Mining Holding Corporation, which is in an industry unrelated to AMC’s typically entertainment-focused enterprises. AMC stock was up by 1.55% pre-market this morning.
Hycroft Mining Holding Corporation Deal
AMC is buying 22% of Hycroft Mining Holding Corporation, and will also receive an “additional 23.4 million warrants in Hycroft at $1.07 per share.” Furthermore, Canadian gold and silver investor Eric Sprott is making an investment in Hycroft equal to AMC, which is $27.9 million in cash for 23,408,240 units. Each unit will consist of one common share of Hycroft and one common share purchase warrant. Hycroft Mine is located in northern Nevada.
AMC CEO Comments: Spider-Man, Recovery and Mining
“The strength of SPIDER-MAN: NO WAY HOME and THE BATMAN, as well as 2022’s promising industry box office, heighten AMC Entertainment’s conviction that we are on a glide path to recover,” AMC CEO Adam Aron remarked in a press release.
“Our strategic investment being announced today is the result of our having identified a company in an unrelated industry that appears to be just like AMC of a year ago,” Aron continued. “It, too, has rock-solid assets, but for a variety of reasons, it has been facing a severe and immediate liquidity issue. Its share price has been knocked low as a result. We are confident that our involvement can greatly help it to surmount its challenges — to its benefit, and to ours.”
