AMC Entertainment Holdings Inc (NYSE:AMC) shares shot up over 20% in regular and after-hours sessions today.
What Happened: AMC shares rallied on Monday after New York Governor Andrew M. Cuomo announced that movie theaters in New York City are now permitted to re-open.
“We will now be reopening various recreational activities across the state including billiard halls, weddings and movie theaters in New York City,” the governor said in a statement.
Additionally, movie theaters closed in any remaining parts of the state can also reopen on March 5, provided they adhere to guidelines.
The guidelines span mask-wearing to a capacity cap of 25%. Enhanced air filtration, ventilation, and purification norms must be met by the film exhibitors.
Why It Matters: AMC said in a statement it will reopen all 13 of its theaters in New York City beginning March 5.
“Governor Cuomo's announcement that movie theatres can reopen in New York City in the first week of March is another important step towards restoring the health of the movie theatre industry and of our Company,” said Adam Aron, CEO of AMC.
This month, a major Chinese stakeholder in AMC converted its shares in the company to sellable ones, as per a U.S. Securities and Exchange Commission filing.
AMC along with GameStop Corp (NYSE:GME), Blackberry Ltd (NYSE:BB), and Nokia Oyj (NYSE:NOK) were highly shorted stocks that were squeezed by retail investors — primarily users of the Reddit discussion board r/WallStreetBets.
Price Action: AMC shares closed nearly 14.9% higher at $6.55 on Monday and rose almost 5.2% in the after-hours session to $6.89.
Photo by camknows on Flickr