AMC Entertainment sells majority Hycroft stake for $24.1 million

AMC Entertainment Holdings Inc. (NYSE: AMC) completed the sale of most of its equity investment in Hycroft Mining Holding Corporation (NASDAQ: HYMC) to Sprott Mining for approximately $24.1 million in net consideration.

The theater chain sold about 2.34 million shares of Hycroft common stock, warrants for approximately 1.34 million Hycroft shares, and rights to approximately 12,000 future-vesting shares under previously granted equity awards. AMC retained more than 1.0 million warrants to purchase Hycroft shares at $10.68 per share and approximately 64,000 Hycroft common shares.

The transaction is expected to generate an accounting profit of approximately $7.9 million in the fourth quarter ending December 31, 2025, according to the company's press release statement.

AMC originally invested in Hycroft in March 2022 alongside Eric Sprott, who owns the acquiring entity Sprott Mining. The movie exhibition company said the proceeds will be redirected toward opportunities in its theatrical exhibition business.

"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," said Adam Aron, AMC's chairman and CEO.

AMC Chief Financial Officer Sean Goodman will remain on Hycroft's board following the transaction. AMC operates approximately 860 theaters and 9,600 screens globally, making it the largest movie exhibition company in the United States and Europe.

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