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Cash is king, says under-fire AMC chief executive after equity raise

Adam Aron, CEO of AMC Entertainment Holdings Inc., defended the company's decision to raise $250 million through an equity sale, emphasizing the importance of cash reserves in the current economic climate. During a recent earnings call, Aron highlighted that despite a 78% drop in AMC's stock price over the past year, the company's strategy is to maintain liquidity to navigate through potential financial challenges. He stressed that having cash on hand is crucial for AMC, especially given the unpredictable nature of the entertainment industry post-COVID, ongoing labor strikes, and the need for financial flexibility. This move has drawn criticism from some investors, but Aron remains steadfast, arguing that the cash will help AMC manage its debt and fund operations without the immediate pressure of repayment obligations.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/economy/cash-is-king-says-under-fire-amc-chief-executive-after-equity-raise/ar-AA1xvTb5 ]