Movie theatre chain AMC Entertainment Holdings Inc. (NYSE: AMC) has received support from Vin Diesel and the highly-anticipated movie, “Fast & Furious 9.”
What Happened: In a new AMC exclusive trailer, Diesel urged fans to see the movie on the big screen.
“There’s nothing like that moment when the lights go down, the projector ignites, and we believe,” Diesel says in the trailer.
Titled F9, the latest installment of the Fast & Furious franchise is scheduled to be released on June 25 amid optimism that moviegoing will be back to almost normal in the U.S. While other blockbuster movies opted to go for dual streaming and theatrical releases, F9 will be released in theatres only.
The movie was originally scheduled to open in May 2020, but its release was significantly delayed to this year due to the coronavirus-induced lockdowns.
See Also: AMC ‘Under Attack’ From Short Sellers Again, CEO Says
Why It Matters: AMC had struggled amid the pandemic last year as the closure of theatres forced the company into a cash crunch. The company, which reopened 98% of its locations in March, expects the rollout of COVID-19 vaccines in the U.S. and the release of blockbuster movie titles in the coming months to boost sales this year.
It was reported in March that AMC is likely getting discounts on film-rental fees from AT&T Inc.’s (NYSE: T) subsidiary WarnerMedia. A discount on film-rental fees, which usually account for a huge share of a theatre chain’s costs, could boost AMC’s gross margins as it struggles with the cash crunch.
Shares of AMC Entertainment and other heavily shorted stocks such as GameStop Corp. (NYSE: GME) have seen volatility this year as retail traders belonging to the Reddit Investor forum r/WallStreetBets bid up the stocks to create a short squeeze.
Price Action: AMC shares closed 1.7% higher on Friday at $10.16.
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