AMC Entertainment Holdings, Inc. completed the sale of the majority of its equity investment in Hycroft Mining Holding Corporation to Sprott Mining on December 5, 2025, receiving a net consideration of $24.1 million. The transaction involved the transfer of approximately 2.34 million shares of Hycroft common stock, representing the bulk of AMC’s holding in the mining company.
The deal also included warrants for roughly 1.34 million Hycroft shares and rights to about 12,000 future‑vesting shares, allowing AMC to maintain a residual interest in the company while freeing up capital. AMC’s original investment in March 2022 was $27.9 million for a 22% stake, and the company retained over 1.0 million warrants to purchase shares at $10.68 each and about 64,000 common shares after the sale.
The transaction is expected to generate an accounting profit of approximately $7.9 million in the fourth quarter ending December 31, 2025, providing a cash infusion that can be deployed toward AMC’s core theatrical exhibition business. CEO Adam Aron emphasized that the divestiture “re‑allocates capital toward attractive opportunities in AMC’s core theatrical exhibition business,” underscoring the company’s strategic shift back to its primary operations.
AMC’s Q3 2025 results, released shortly before the Hycroft sale, showed revenue of $1.3 billion—up 5.7% from $1.23 billion in Q3 2024—while the company posted a net loss of $298.2 million, a larger loss than the $20.7 million net loss in Q3 2024. The revenue beat was driven by record per‑patron spending, with admissions revenue per patron rising to $12.25 and food and beverage revenue per patron reaching $7.74, the second‑highest in company history. The loss was largely attributable to a $20 million non‑cash charge from a July 2025 refinancing, which increased the company’s debt‑to‑equity ratio but did not affect operating cash flow.
Management remains optimistic about the future, projecting the fourth quarter to be the highest‑grossing in six years and anticipating a significantly larger box office in 2026. The sale of Hycroft aligns with AMC’s broader debt‑reduction strategy, which has included refinancing and exchangeable note transactions to strengthen the balance sheet. By divesting a non‑core asset, AMC can focus capital on theater expansion, technology upgrades, and marketing initiatives that support long‑term growth.
Hycroft Mining has been actively improving its financial position, eliminating all debt and raising $235 million in net cash proceeds to prepay approximately $136 million of indebtedness. The company’s improved balance sheet and increased stake by Eric Sprott suggest that the divestiture was timed to maximize value for AMC shareholders while allowing Hycroft to continue its turnaround efforts.
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