AMC Entertainment's Stock Declines Amid Box Office Slump and Equity Distribution Agreement
AMC Entertainment's shares dropped by 15% after announcing plans to sell up to $250 million worth of stock to offset poor box office revenue, partly blaming last year's writers' and actors' strikes for delayed releases. The company also cited increased working capital requirements and cash burn. The beginning of 2024 saw a 20% drop in domestic box office revenue, with big-budget films underperforming, and the industry still reeling from the pandemic. Analysts expect full-year box office revenue for 2024 to be lower than 2023, despite highly anticipated releases on the horizon.