Grab the popcorn… There’s a plot twist in AMC’s stock saga. The struggling theater chain has bought a 22% stake in a gold mine for $28M. FYI, the Nevada mine, Hycroft, went public through a SPAC in 2020 after financial trouble and bankruptcy. AMC stock rose 6%, and the Nevada mine, Hycroft, jumped 19% yesterday on news of the odd-coupling:
Roller coasters… Last year, AMC shares popped 12X and GameStop shares spiked 7X thanks partly to an influx of retail investors. Both companies used their juiced-up market caps to raise cash.
AMC’s already converted some buzz into cash… Now it’s using that cash in even more experimental ways — e.g., acting kind of like a holding company. But it’s a long way from AMC’s core biz: movies, getting people to buy popcorn, and see them again. As for Hycroft, the mine’s looking to raise $500M through an ATM offering. TBD if that’ll work.