AMC + National CineMedia = Sure win?

What happened?

Shares of National CineMedia Inc more than doubled in very active trading, after AMC Entertainment Holdings Inc. disclosed that it has taken a large stake in the cinema advertising platform. AMC said late Monday that it owned 16.58 million National CineMedia shares or 9.1% of the shares outstanding. That makes AMC the second-largest shareholder, behind fellow movie theater operator Cinemark Holdings Inc.

Now it's worth taking note that National CineMedia has filed for a delay in filing its annual report, as it is engaged with certain lenders. There was “substantial doubt” about its ability to continue as a going concern, which caused the stock to tank.

Now with AMC joining as a major shareholder, both stocks have experienced an uplift in their share price.

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