Warner Bros.’ announcement on Thursday darkened the already gloomy outlook for the nation’s motion picture exhibitors. Shares in AMC Theatres, the nation’s largest exhibitor, dropped 17% on Thursday alone, and ended the week trading at $3.51. One year prior, AMC shares had been trading at $8.50. Meanwhile, the company has announced plans to issue new shares to raise up to $700M to stave off bankruptcy. In its recent Q3 earnings announcement, AMC reported that it had $500M in cash and liquid assets but was on a run rate to lose $115M each month. Regal and Cinemark, the nations’ #2 and #3 exhibitors, appear to be operating from a somewhat more stable foundation, each having secured financing to see them through a more extended period of disruption from the pandemic.
See also: Cineworld, owner of Regal, secures new financing to tide it over until reopening (LA Times)