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Highlights
- Hycroft Mining (NASDAQ: HYMC, HYMC: US) and AMC Entertainment (NYSE: AMC, AMC:US) began trending high on the market after the two announced a deal on Tuesday, March 15.
- AMC said that it has agreed to buy a 22 per cent stake in the Nevada-based gold miner.
- Following this announcement, Hycroft Mining stocks shot up by over 29 per cent at a point on Tuesday morning.
Hycroft Mining (NASDAQ: HYMC, HYMC: US) and AMC Entertainment (NYSE: AMC, AMC:US) began trending high on the market after the two announced a deal on Tuesday, March 15. AMC said that it has agreed to buy a 22 per cent stake in the Nevada-based gold miner.
Following this announcement, Hycroft Mining stocks shot up by over 29 per cent at a point on Tuesday morning.
Hycroft Mining-AMC Entertainment deal – key details
Apart from the movie theatre operator, big-time precious metal investor Eric Sprott is also said to be equally investing in Hycroft Mining.
As per the release, AMC and Mr Sprott will each invest US$ 27.9 million in the gold miner to buy 23,408,240 Hycroft units (priced US$ 1.193 apiece), including one ordinary share and one share purchase warrants.
The entertainment company said that it would get an extra 23.4 million warrants in the precious metal miner at US$ 1.07 apiece.
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Now let us glance at their overall performance.
Hycroft Mining (NASDAQ: HYMC, HYMC: US)
Stocks of Hycroft Mining were trading at US$ 1.80 per share at 11:12AM EST on Tuesday, having galloped by almost 458 per cent this month.
On the financial front, Hycroft earned a total revenue of US$ 31.68 million in the quarter that ended on September 30, 2021, up from US$ 12.29 million a year ago.
AMC Entertainment Holdings Inc (NYSE:AMC)
AMC stocks also surged by over three per cent to trade at US$ 13.988 apiece on Tuesday (11:14AM EST).
AMC increased its Q4 revenue to US$ 1.17 billion in 2021 compared to US$ 162.5 million in 2020, in terms of Generally Accepted Accounting Principles (GAAP).
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Bottomline
Upon the closure of this deal, AMC Entertainment and Mr Sprott would hold about 21.8 per cent stake each and become the major shareholders in Hycroft.
Also, this US$ 56-million deal is expected to help the precious metal firm expand its “financial runway” – a detail that investors could bear in mind when exploring this company.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
