Following a slight drop of 1.5% on Friday, Hycroft Mining Holding Corporation (NASDAQ: HYMC) saw an impressive weekend growth spurt. The 21.9% surge in the after-hours session was a reversal of the last trade session’s loss. This growth surge, seemingly coming out of nowhere, pushes HYMC at its highest in over two weeks. The US-based gold mining company, despite its recent performance, is of the most closely analyzed stocks in the global markets. This spotlight is afforded to HYMC, as a result of its impressive trajectory. Since the start of the month, HYMC ballooned by almost 550%, shooting up from $0.29 to $1.88, at one point.
Hycroft Reports Successful Financing of $140 Million
One trigger event to this sudden HYMC surge potentially links to news coming out this weekend about a recent liquidity boost the company achieved. Following its at-the-market (ATM) program, Hycroft managed to sell almost 90 million shares, netting in the financing of almost $140 million. This liquidity boost through financing, substantially reduces risk, given the company’s debt repayment plans now pushed up to 2027. Moreover, CEO Dianne Garrett has indicated that the recent cash injection substantially shifts the dynamics of the company’s affairs. With the proceeds, Hycroft stands ready to follow through with its various development programs. This includes the company’s robust exploration project of the Hycroft Mine. This news comes after a similar financing breakthrough two weeks ago of a $55.9 million equity funding. This financing comes from giant metal investor Eric Sprott along with AMC Entertainment Holdings.
AMC Entertainment’s Stake in Hycroft
Another reason why HYMC has been under the spotlight is due to a 22% stake in AMC entertainment. AMC, which had been a top name amongst the Reddit stocks, is one of the world’s largest movie theatre chains. The diversification move, promises to deliver substantial synergistic benefits to both parties. Given that AMC was a meme stock darling since last year, Hycroft understandably gained significant coverage in the media, and especially across social media chatter. The market rushed to get hands-on the prospective stock, driving up the price in the process.
Precious metals miner, Hycroft saw a share price surge over the weekend, owing to breakthrough financing announcements recently put out. Its successful ATM program, delivering $140 million vastly enhanced market perception towards HYMC. Moreover, the recent investment by AMC Entertainment, in a 22% HYMC stake further pushed the stock into the spotlight.