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AMC Took A Gamble Everyone Questioned — And Just Cashed Out $7.9 Million Profit
Benzinga· 2025-12-08 16:56
Core Insights - AMC Entertainment Holdings has sold the majority of its stake in Hycroft Mining Corporation, realizing a profit from its initial investment made in 2022 [1][2][4] Group 1: Transaction Details - The sale was completed for a net consideration of $24.1 million, with an expected accounting profit of approximately $7.9 million in Q4 [2] - AMC sold around 2.34 million shares, along with warrants for about 1.34 million Hycroft shares and rights for around 12,000 future-vesting shares [2] - Post-sale, AMC retains a small position in Hycroft, holding around 1 million warrants and approximately 64,000 common shares [3] Group 2: Strategic Focus - The decision to sell was made to refocus on the core movie theater business, with AMC's CEO stating it was the right time to monetize the investment [5] - AMC aims to redeploy the capital towards substantial opportunities within its theatrical exhibition business [5] Group 3: Financial Performance - AMC reported strong revenue and record revenue per person in Q3, with expectations for a robust Q4 driven by several box-office hits [4][6] - The company anticipates the fourth quarter to be the highest-grossing in six years, with a promising film slate for 2025 and 2026 [6][7] Group 4: Stock Performance - AMC stock has increased by 1.54% to $2.31, with a year-to-date decline of 42.7% in 2025 [7]