Hycroft Mining Holding Corporation (HYMC) surged in the current market after announcing investment in HYMC by AMC and Eric Sprott. HYMC values at $1.89, gaining more than 36.33% compared to the previous closing price. The stock closed at $1.39 at the end of the last trading session. The stock volume traded in the previous trading session was around 29.70 million shares. The current market cap of the company is about $120.79 million.
HYMC: AMC and Eric Sprott investment
Hycroft Mining Holding Corporation (HYMC) announced in a press release today that investors in precious metals Eric Sprott and AMC Entertainment Holdings, Inc. (AMC) will invest $56 million in HYMC.
According to the agreement, AMC and Mr. Sprott will invest approximately $27.8 million each in exchange for 23.4 million units. One unit will consist of a common stock share and a common stock purchase warrant of HYMC. The company decides the pricing as $1.193 per unit, required by NASDAQ for an at-market purchase unit. The pricing for each unit of purchase warrant is decided to be $1.068 per share. The units will have a five-year term from the date it is issued.
After the deal, AMC will become the second-largest stakeholder in the Hycroft Mining Holding Corporation (HYMC) and will have access to the right of appointing the Hycroft Board of Directors.
HYMC Management Remarks
AMC Entertainment Holdings, which has proven its expertise and ability to deal with liquidity issues and raise capital to maximize the value of significant underlying assets, has announced a significant investment in the future of Hycroft, led by Eric Sprott, one of the world’s leading precious metals investors. To put it another way, their investment provides Hycroft with a long-term funding source. Furthermore, their trust in us shows that Hycroft’s gold and silver deposit is of world-class quality and that we have the potential to unlock significant value at this critical juncture in its development. With the help of our new investors, Hycroft can move up the value chain.
Conclusion
The company is looking forward to using the proceeding in different corporate expenses, such as working capital or CAPEX, repayment of debts, or other investments. The stock price has surged significantly with this investment.
