AMC Theaters is yet again making big moves. CEO Adam Aron announced early this morning via Twitter that AMC is purchasing a 22% stake in the gold and silver miner company, Hycroft Mining Holding Corp (HYMC). Aron took to twitter stating,
“AMC is playing offense again with a bold diversification move. We just purchased 22% of Hycroft Mining (HYMC) of northern Nevada”.
Retail investors agree that the popular movie chain company AMC has made impressive progress over the last year. CEO and President of the company Adam Aron has taken the bull by the horns to lead this company out of the dark, which gives retail investors confidence to keep holding the stock. AMC financials continue to improve, at the end of Q3 AMC had $1.8 billion in liquidity.
AMC will spend about $27.9 million for its stake in Hycroft, which will warrant 23.4 million shares of the mining company. The movie company is not alone in making a large stake in Hycroft — Canadian Billionaire Eric Sprott also has invested an equal amount of money into it as AMC has. Together, $56 million has been invested into the gold & silver mining company, Hycroft.
WHY DID AMC THEATERS BUY A STAKE IN HYCROFT?
Adam Aron indicates that they believe that Hycroft is in a similar position that AMC was in a year ago, but just in a different industry. Aron says that Hycroft has “rock-solid assets”, but they have been facing a liquidity issue. The CEO of AMC seems confident that by taking a stake in the gold & silver miner company, that they can help bring it back up. Additionally with the new investment, AMC will be appointing a representative to the Hycroft Board of Directors.
Just after the news of AMC purchasing a stake in Hycroft Mining, the Hycroft share price (HYMC) increased over 30% reaching $1.86. This could be a “gold mine” for AMC (no pun intended) as precious metals and commodities have recently spiked due to recent global events like increasing sanctions on Russia and tensions rising with the Russia and Ukraine war.