Multinational cinema chain Cineworld saw the value of its shares surge on Monday following an announcement that it had secured new loans worth $450 million and waivers for its debt covenants until January 2022.

In addition, Cineworld announced that it will issue equity warrants worth around 11% of its share capital, and that its new debt measures have given it over $750 million in extra liquidity and allowed its monthly cash spend to be reduced to around $60 million.

The company also extended the maturity of its $111 million incremental revolving credit facility from December 2020 to May 2024.

“Over the long term, the operational improvements we have put in place since the start of the pandemic will further enhance Cineworld's profitability and resilience,” said Mooky Greidinger, CEO of Cineworld Group.

“The group continues to monitor developments in the relevant markets in which we operate and our entire team is focused on managing our cost base.”

Cineworld has been struck hard by the COVID-19 pandemic, with government-imposed restrictions on public gatherings forcing it to close its theatres and make heavy layoffs.

The news of its new debt relief elevated Cineworld shares by 19.5% in early trading, reaching 55.08 pence per share. Last year saw a high of £2.27 per share, having since fallen by 77% since the onset of the COVID-19 pandemic.

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Cineworld has also emerged as the UK’s most shorted stock, with around 9.51% of its shares held short by 10 investment firms, according to analysis from GraniteShares.