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AMC stock surges after movie theater chain raises $428 million in share sale

Shares of AMC Entertainment are surging after the movie theater giant announced it raised more cash after completing a share equity program.

AMC shares closed up nearly 24% on the New York Stock Exchange Thursday, and climbed another 3% in pre-market trading Friday.

On Thursday, AMC announced it completed its 43 million share at-the-market equity program, which netted the struggling entertainment company $428 million in cash.

“Bringing in an additional $428 million of new equity capital will immediately buttress and fortify our liquidity profile,” said AMC CEO and President Adam Aron in a statement. “The additional cash raised puts AMC in a stronger position to tackle the challenges and capitalize on the opportunities that lie ahead.”

AMC is among many businesses hit hard by the coronavirus pandemic, as potential visitors to its 950 theaters were forced to stay home to curb the spread of COVID-19.

In March, AMC Theatres announced it would have 98% of its U.S. theaters reopenedby the end of that month.

As of April 30, approximately 589 of its 593 domestic locations were operating, along with 110 of its 357 international locations, said AMC last week in a statement reporting first quarter earnings.

Earlier this year, shares of AMC soared along with video game retailer GameStop thanks to smaller investors who banded together on sites like Reddit.