AMC Theatres has sold most of its shares in Hycroft Mining Holding Corporation, a gold and silver mining company, to Sprott Mining, a private Canadian company led by well-known precious metals investor Eric Sprott. AMC made a net profit of $24.1 million from this deal, which is almost the same as the $27.9 million it spent to buy a 22 percent stake in Hycroft in 2022 as part of a plan to diversify its business beyond its core theatrical business.
The deal included giving up about 2.34 million shares of Hycroft’s common stock, as well as warrants for about 1.34 million shares and rights to 12,000 shares that will vest in the future under current equity awards. Even though it sold Hycroft, AMC still owns more than 1 million warrants to buy Hycroft shares at $10.68 each and about 64,000 common shares. This means it can still benefit from Hycroft’s growth potential.
Adam Aron, the Chairman and CEO of AMC, said that the first investment in Hycroft was meant to get value out of the mine’s huge gold and silver resources. He said that the current sale lets AMC make money on most of its original investment while also putting money into profitable opportunities in its main movie theater exhibition sector. Also, Sean Goodman, AMC’s CFO, will stay on Hycroft’s board to help the company move forward in the future.
AMC is making a big change with this move. It wants to strengthen its core theater business while keeping a presence in the metals mining sector through retained shares and warrants. The deal is also expected to bring in about $7.9 million in accounting profit for AMC’s fourth quarter, which ends on December 31, 2025.
