To The Moon

🌟🌟🌟There is good news for $AMC Entertainment(AMC)$  as it announced  debt restructuring on Monday to strengthen its balance sheet and prepare for an expected recovery in the movie theatre industry.

AMC shares closed up 5.3% on Monday and registered its largest percentage increase since July 8 when it rose 8.3%.

The refinancing transactions extended the maturity of around USD 1.6 billion of AMC's debt due in 2026 to 2029 and 2030, giving AMC more breathing space to pay back the huge loan. 

AMC had also arranged for the potential repurchase of up to USD 800 million of additional existing secured term loans due in 2026 in exchange for new term loans due in 2029.

On top of that, AMC has arranged for the potential issuance of up to an additional USD 50 million of exchangeable notes in order to repurchase additional outstanding debt due in 2025, 2026 and 2027.

According to CEO Adam Aron, this debt restructuring is a major milestone and a strong vote of confidence in AMC's future by its lenders. 

AMC recently enjoyed a busy July 4 weekend boosted by Despicable Me 4 as well as Pixar 's animated blockbuster Inside Out 2.

Inside Out 2 became the highest grossing film of 2024 with a USD 1 billion worldwide box office just 19 days after its release.  This is a historical record for an animated film. 

Last year AMC also benefited from Taylor Swift 's New Era Concert Film as well as Beyonce' s Renaissance Tour.

In contrast $Faraday Future Intelligent Electric Inc.(FFIE)$  has dropped 23% this week.  Faraday Future has just held an interactive Investor Community Day at its Los Angeles Headquarters on July 20.  The event highlighted Faraday Future's vehicle experience including the FF design studio, 3D, modelling lab as well as demonstrations on the technological capabilities of the FF 91 2.0 EV.

Faraday Future CEO Mathias Aydt said that Faraday Future is planning a second brand for the mass market with volume production but no specific details were given as to the time line of the 2nd brand.

Faraday Future plans to hold its Annual Meeting of Stockholders on July 31 2024.  The company has asked that all Faraday stockholders vote for all proposals such as reverse stock split in order to meet Nasdaq's conditions to stay listed.

Faraday Future is also looking for Middle East partners who will inject more cash into the struggling EV company. 

For now, Faraday Future's main aim is to stay afloat by complying with Nasdaq's requirements to produce its latest earnings report and to achieve the minimum price of USD 1 per share in order to avoid being delisted. 

Faraday Future is currently facing an uphill battle to survive as  it desperately need a fresh injection of funds to continue its operations.  As the EV markets are very competitive, Faraday Future's EVs which cost more than USD 300,000 per unit will not find too many buyers. 

Between Faraday Future  and AMC, I believe that AMC will have  much better chance to pull through due to its debt restructuring and better offerings at its cinemas globally. 

Investing in Meme stocks is like riding a roller coaster and definitely not for the fainted hearted.  I prefer JOMO - the Joy of Missing Out to FOMO - Fear of Missing Out when it comes to Meme stocks. 

@Daily_Discussion  @TigerStars  @Tiger_comments  @MillionaireTiger  @CaptainTiger