Theater operator AMC, fund manager Eric Sprott to invest $56 mln in Hycroft Mining

Hycroft Mining Holding

15/03/2022 12:06

March 15 (Reuters) - AMC Entertainment  AMC.N  said on
Tuesday it would invest $56 million in gold and silver producer
Hycroft Mining Holding Corp  HYMC.O  along with Canadian fund
manager Eric Sprott, a move the theater operator's CEO said
would help the company diversify.
    Shares of U.S.-based Hycroft, which owns the 71,000 acre
Hycroft Mine in northern Nevada, jumped nearly 89% in premarket
trading.
    "AMC is playing on offense again with a bold diversification
move," AMC chairman and chief executive officer Adam Aron said
in a tweet on Tuesday, noting that AMC would help Hycroft
bolster its liquidity.
    The company did not immediately respond to Reuters request
for comment regarding the reasons for its investment in Hycroft
    Sprott and AMC are investing $56 million in Hycroft and will
become the company's second-largest stockholders, each holding
nearly 21.8% of the outstanding common shares of Hycroft after
the closing of the deal.  urn:newsml:reuters.com:*:nBw5KmqBLa
    Investment firm Mudrick Capital Management is currently the
largest shareholder, holding a 40.38% stake, according to
Refinitiv data.
    AMC, which was at the heart of the 2021 meme stocks saga,
has also increased investments in NFT programs and accepted
cryptocurrency, along with its initiative to enter the industry
of retail popcorn sales. Its shares have gained nearly 22% in
last 12 months.         
    AMC said the strength from the release of blockbusters such
as "Spider-Man: No Way Home" and "The Batman" has helped the
company to recover from the pandemic-driven fall.
    AMC will also receive an additional 23.4 million warrants in
Hycroft at $1.07 per share and has been granted the right to
appoint a representative to the Hycroft's board.  urn:newsml:reuters.com:*:nBw5KmqBLa

    
    

 (Reporting by Tiyashi Datta in Bengaluru; Editing by Amy Caren
Daniel)
 ((tiyashi.datta@thomsonreuters.com;))