Cinema giant AMC Theatres has completed a transaction to transfer the majority of its equity stake in gold and silver mining company Hycroft Mining Holding to Sprott Mining, a private Canadian corporation owned by one of the world’s leading gold and silver investors, Eric Sprott. AMC had acquired a 22 percent stake in the company for $27.9 million in cash in 2022, describing the unusual move as an opportunistic one as it was looking to create value by thinking outside the box – and outside the box office.
Under the terms of the private sales transaction, AMC divested approximately 2.34 million shares of Hycroft common stock, along with warrants for approximately 1.34 million Hycroft shares and rights to approximately 12,000 future-vesting shares issuable under previously granted equity awards.
AMC retains more than 1.0 million warrants to purchase Hycroft shares at $10.68 per common share and approximately 64,000 Hycroft common shares, “allowing the company to participate in the future success of Hycroft,” the exhibitor said.
Said AMC chairman and CEO Adam Aron: “AMC’s original investment in Hycroft, together with Eric Sprott, set in motion the transformation of Hycroft to unlock the full potential of its vast gold and silver mineral resources. This is an exceptional result for both Hycroft and AMC investors and exactly what we intended when we originally invested in March of 2022.”
Aron added: “Now is the right time for us to smartly monetize the majority of our original investment and re-deploy the capital towards the substantial opportunities within our core theatrical exhibition business. At the same time, with this transaction, we retain warrants to purchase more than 1 million shares of Hycroft plus a small direct equity stake so that AMC shareholders will continue to benefit from Hycroft’s future success. To that end, I’m glad that our chief financial officer, Sean Goodman, will remain on the Hycroft board to support the progress we expect Hycroft will enjoy in the future.”
Aron concluded: “With the backdrop of a strong Thanksgiving holiday box office, coupled with an exciting film slate for the remainder of 2025 and 2026, the future for AMC looks exceedingly bright as we continue to focus on delivering the very best theatrical experience with our signature recliner seats, immersive sound, crisp laser projection, and the most sought-after premium large format experiences.”
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