AMC Entertainment Announces Another Stock Sale, and Shares Tumble

AMC Entertainment (AMC) shares sank practically 10% Friday when the struggling theater chain operator introduced one other inventory sale to lift wanted money.

The firm wrote in a regulatory submitting that it might offer as much as 50 million shares by way of gross sales agent Goldman Sachs (GS), which it would situation or promote “at any time and infrequently.”

AMC stated it might use the proceeds to repay, redeem, or refinance its current debt, and to spend money on its core enterprise to replace theaters, together with “a rise within the variety of branded premium massive format screens.”

The firm, which grew to become one of many favorites of the meme inventory craze of early 2021, has taken a number of steps to shore up its monetary place within the current previous. Among them, a number of inventory gross sales and debt-for-equity swaps, together with a 1-for-10 reverse inventory break up in the summertime of 2023 after changing AMC Preferred Equity items into frequent shares. 

Shares of AMC Entertainment soared yesterday together with different meme shares when a hero of the motion, “Roaring Kitty” (a.ok.a. Keith Gill), posted one other cryptic image on X, the primary time he has been on the social media web site since September. With immediately’s selloff, the shares have misplaced practically 1 / 4 of their worth this 12 months.