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Theater chain AMC uses funds raised during meme craze to buy a gold miner


Adam Aron is the president and chief executive officer of AMC Entertainment.

David Orrell | CNBC

Cinema chain AMC EntertainmentCompanies announced Tuesday that the company had agreed to acquire a significant stake in Nevada’s miner of metals. It is an extraordinary expansion for this once-in-a-lifetime meme stock.

AMC will invest $27.9million in cash to complete the transaction, and AMC will receive roughly 23.4million shares. Hycroft Mining Holding CorpAmount of warrants for stock. AMC would become the owner of approximately 22% of Hycroft.

AMC CEO Adam Aron announced that the strength of SPIDERMAN – NO WAY Home and THE Batman, along with 2022’s promise box office, have increased AMC Entertainment’s confidence in their ability to recover. Today’s strategic investment is the result our identification of an industry company that looks exactly like AMC one year ago. The company, which too is backed by solid assets, was facing an immediate liquidity problem due to a number of factors. As a consequence, its share price was reduced. We are confident that our involvement can greatly help it to surmount its challenges — to its benefit, and to ours.”

Hycroft shares increased nearly 90% by premarket trading, to $2.64 AMC shares fell 50% in the first quarter of this year, while AMC shares gained 3% in premarket trades.

Eric Sprott, a metals investor Eric Sprott is purchasing the AMC shares and warrants. Hycroft stated in the release that Sprott Private Resource Lending II, an investment vehicle, has extended to modify its maturity to May 2027 instead of May 2025.

AMC stock was a “meme stock” and soared last year as a large number of retail investors purchased shares in companies heavily shorted. Aron is open to new shareholders and even offers popcorn deals for company owners.

This company also made use of its popularity. raise billions in additional capitalAron stated that some of the money would go to strategic acquisitions.

Additionally, the CEO was able to sell tens of millions of dollars of his own shares in AMCHe has also attributed it to estate planning.