Is Billionaire Eric Sprott Giving Up on AMC Stock?
Shares of Hycroft Mining (NASDAQ: HYMC ) and AMC Entertainment (NYSE: AMC ) are in focus after Eric Sprott reported selling 4.08 million shares of HYMC stock. Hycroft engages in the mining and development of gold and silver. Because of AMC’s stake in the company, Sprott’s sales have led some investors to wonder if he’s giving up on AMC stock, but that’s unclear at this time. In March, AMC announced that it had taken a 22% stake in Hycroft as part of a “bold diversification move.” The stake, worth $27.9 million at the time, was purchased at a price of $1.19 per share. Each share also came with one warrant priced at $1.07 per share. In total, AMC acquired 23.4 million shares and warrants of HYMC. At the time, CEO Adam Aron explained: “Our strategic investment being announced today is the result of our having identified a company in an unrelated industry that appears to be just like AMC of a year ago. It, too, has rock-solid assets, but for a variety of reasons, it has been facing a severe and immediate liquidity issue.” During March, Sprott announced that he would acquire the same amount of shares and warrants that AMC purchased, priced at $1.19 as well.
Is Billionaire Eric Sprott Giving Up on AMC Stock?
Shares of Hycroft Mining (NASDAQ: HYMC ) and AMC Entertainment (NYSE: AMC ) are in focus after Eric Sprott reported selling 4.08 million shares of HYMC stock. Hycroft engages in the mining and development of gold and silver. Because of AMC’s stake in the company, Sprott’s sales have led some investors to wonder if he’s giving up on AMC stock, but that’s unclear at this time. In March, AMC announced that it had taken a 22% stake in Hycroft as part of a “bold diversification move.” The stake, worth $27.9 million at the time, was purchased at a price of $1.19 per share. Each share also came with one warrant priced at $1.07 per share. In total, AMC acquired 23.4 million shares and warrants of HYMC. At the time, CEO Adam Aron explained: “Our strategic investment being announced today is the result of our having identified a company in an unrelated industry that appears to be just like AMC of a year ago. It, too, has rock-solid assets, but for a variety of reasons, it has been facing a severe and immediate liquidity issue.” During March, Sprott announced that he would acquire the same amount of shares and warrants that AMC purchased, priced at $1.19 as well.