AMC shares shot up 30% on Monday: here’s why

AMC Entertainment Holdings Inc (NYSE: AMC) shares are up nearly 30% on Monday after CEO Adam Aron made a comment that again spiced up retail interest in the stock.

AMC to make more transformational deals

Speaking with Reuters over the phone, Aron said the company’s $27.9 million “transformational” bet on Hycroft Mining Holding Corp (NASDAQ: HYMC) wasn’t going to be a one-time event.  

I’d like to think there will be more third-party external M&A announcements going forward where AMC can reach for the stars and intriguing investments that have potentially attractive returns.

The return on the world’s largest cinema chain’s investment in Hycroft has been phenomenal so far. It bought HYMC at $1.07 a share versus $1.94 a share at present.

CEO Aron defended the Hycroft investment

AMC’s deal with the hard-hit mining company met with skepticism last week as it wasn’t even remotely relevant to AMC’s core competency. Still, CEO Aron is confident that a 22% stake in Hycroft will be lucrative.

Transformational M&A is mandatory. Our shareholder base has given us capital to deploy with the clear expectation that we are going to do exciting things with the money they entrusted to us.

According to the chief executive, the $28 million bet was rather small compared to the total cash that AMC has at its disposal. He, however, reiterated that the company will also continue to strengthen its core business.

The post AMC shares shot up 30% on Monday: here’s why appeared first on Invezz.

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 All Rights Reserved.

To Top