Adam Aron ‘Relaxed and Confident’ About AMC’s Future; introduces the AMC Entertainment Visa Card with the brand – CinemaCon

AMC Entertainment CEO Adam Aron said a booming box office and a sharp turn from studios and streamers to theaters make him “as relaxed and confident about AMC’s future as I can get.”

Speaking to Deadline at CinemaCon in Las Vegas, Aron hinted that the icing on the cake would be a judge’s approval of a shareholder settlement this summer, paving the way for the big circuit to raise as much money as needed is if it has to. and increase the stock price in a 10:1 reverse stock split.

AMC shareholders overwhelmingly approved plans for the reverse split, a conversion of AMC Preferred Equity (AMC) securities into AMC common stock and authorization to issue new shares. If it falls again, he can no longer sell many shares, which is why Aron said the issuer is not out of the woods. Some shareholders filed a lawsuit to block the moves, but then settled with AMC. The Delaware Chancery Court judge is expected to approve the settlement and said today she would allow time for comment, citing investor interest in the case. She set a tentative trial date for late June.

“The plaintiffs support this settlement. We support this agreement,” he said. “I will have more confidence after we have the opportunity to do the shareholder vote,” he added. “Having the flexibility to raise capital when needed is very important. Whether it is necessary or not depends on how big the box office is this year.” He estimates it will be more than $9 billion.

So far so good – things are looking good. “I think we are on a cliff. And I’m sure ’23 will be bigger than ’22. And I expect the 24 to be bigger than the 23. And I’ve already said publicly, I think 2024/2025 the pandemic will be an old memory.” He called Covid “a five-year detour for this industry. And we just finished our third year.”

If the plan is approved and implemented by AMC, “our stock price should increase tenfold. And then, after multiplying it tenfold, we can sell up to 408 million more shares. And then you’re talking about $10-12 billion in capital that you can raise.

Meanwhile, he said, “I want to honor the fact that 70 movies came out last year and there are 100, 110 movies coming out this year and maybe a bigger number coming out in 2024,” he said. I am so encouraged by the fact and appreciate it so much [studios] now doing exactly what we asked for a year ago, which is to have some sort of theatrical window, because there is quite a consensus on a 45-day window. And there are so many examples of clever films that shouldn’t even be released that have hit the cinema calendar in the last 90 days.

He said he didn’t see it Flash still — he’ll be at a demo later today — but he likes everything that’s come out of the annual trade show so far. Warner Brothers.” Presentation was this morning, Sony’s last night.

He’s also “very excited to lean into Apple movies and Amazon movies in our theaters.”

When asked why he thinks Netflix hasn’t joined the other two streamers on the big screen, he said: “I have strong opinions about what they’re doing and why they’re doing it. But I prefer not to share. “

He also declined to comment on the possible impact of a potential writers’ strike on AMC or the exhibit, or comment on the ongoing bankruptcy of rival Cineworld, Regal’s parent company. When asked if AMC might add venues, he said, “We are constantly looking for attractive theaters to add to our network.”

Aron also gradually diversified and introduced AMC popcorn, which is introduced in thousands of Walmarts. Today, the chain announced an AMC Entertainment Visa card that offers points for members of the AMC Stubs loyalty program. There is an “Apply Now” button on AMC’s website.