AMC EntertHldgRg-A announced that it will acquire a 22% stake in Hycr Mng Hldg Rg-A, company dedicated to silver gold mining. The CEO of the mining company, Adam Aronhas pointed it out as a movement of “bold diversification” by the cinema firm according to Caitlin McCabe in The Wall Street Journal.
AMC bought the 22% of the miner, venturing outside of its core movie operations as it adjusts to a post-Covid-19 world.
AMC said in a statement that it would invest 27.9 million dollars in force in Hycroft Mining Holding Corp. HYMC Chief Executive Adam Aron said on Twitter, “AMC is playing offense again with a bold diversification move.”
The actions of AMC They uploaded a 3.1% in pre-market operations, while shares of Hycroftlisted on the stock market, rose by 88%. The miner that owns the Hycroft mine in northern Nevada said she, too, received an investment from Eric Sprott, an investor in precious metals.
Last year, the movie company became a fan-favorite stock among individual investors who accumulated shares of the company during the mania of the stock memes. Many merchants have yet to sell. The company has used its investor base to shore up its finances. Earlier this year, Aron said he wanted to refinance some of the company’s debt costs to reduce its interest exposure and delay some debt maturities by several years.
Hycroft owns a mine of more than 70,000 acres in northern Nevada which, according to the company, contains 15 million ounces of gold and 600 million ounces of silver.
Hycroft’s shares, however, have taken a hit in the past two years.
Aron characterized the investment as “a company in an unrelated industry that appears to be like AMC a year ago. It also has rock-solid assets, but for a variety of reasons, it has faced a serious and immediate liquidity problem.”
AMC will receive 23.4 million units at Hycroftconsisting of one common share and one common share purchase warrant. AMC said that with its investment, it has been granted the right to nominate a representative at the Hycroft board.
AMC EntertHldgRg-A It closed Monday’s session in the red at $13.56 and the latest moving average crossover, the 70-period below the 200-period, would give us a bearish signal.
Hycr Mng Hldg Rg-A also closed yesterday’s session in the red at $1.39 and the location of the moving averages also gives us a bearish signal.