AMC Announces Sale of 11.55 Million Shares, Rattling Stock Price

The company has warned investors that they could risk “all or a substantial portion” of their money.

Entertainment 
7,814 7 Comments

AMC Entertainment Holdings, Inc. on Thursday announced plans to sell up to 11.55 million shares, leading to wild fluctuations in its stock price.

Hours later, the movie theatre company said that it completed its “11.550 million share at-the-market (ATM) equity program” launched earlier in the day, raising about $587.4 USD million of new equity capital. Shares were sold at an average price of approximately $50.85 USD per share.

AMC President and CEO Adam Aron said that the move helped strengthen the company.

“Bringing in an additional $587.4 million USD of new equity on top of the $658.5 million USD already raised this quarter results in a total equity raise in the second quarter of $1.246 billion USD substantially strengthening and improving AMC’s balance sheet, providing valuable flexibility to respond to potential challenges and capitalize on attractive opportunities in the future.”

According to Yahoo! FinanceAMC shares was down nearly 18 percent by close of market on Thursday at $51.34 USD per share. Earlier in the day, the price dipped to a low of $38.49 USD

According to CNBCAMC shares have increased by more than 140 percent his week alone, and over 2,900 percent this year.

On Wednesday, the company announced that it was launching a program called AMC Investor Connect, which allows the company to directly communicate with its sizable number of retail shareholders. Benefits of the program include a free popcorn, free or discounted items and invitations to special screenings. The news caused AMC shares to rally 95 percent, reaching an all-time high.

However, the company has remained cautiously optimistic of its recent rise, and in an SEC filing published Thursday, warned investors of continued volatility.

“We believe that the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last,” the company said. “Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment.”

The meme stock made popular by Reddit‘s r/wallstreetbets has recently seen an impressive rise, and last week, its market value rose above $10 billion USD for the first time.

Read Full Article
Text By
Share this article

What to Read Next

Tesla Recalls Over 7,600 Vehicles Due to Possible Seatbelt Issues
Automotive

Tesla Recalls Over 7,600 Vehicles Due to Possible Seatbelt Issues

The third recall this week.

Hender Scheme's New MIP-25 Pays Homage to the Air Max 90
Footwear

Hender Scheme's New MIP-25 Pays Homage to the Air Max 90

The master leatherworkers salute one of the most famous silhouettes in the Air Max lineage.

Kingsford Links up With Ben Baller for Fire Drops Grill Collaboration
Fashion 

Kingsford Links up With Ben Baller for Fire Drops Grill Collaboration

Presented by Kingsford
Rap’s favorite jeweler helped designed another grill, but we ain’t talking teeth this time.

Rory McIlroy Withdraws From Memorial Tournament Pro-Am, Gives Up Press Conference
Golf

Rory McIlroy Withdraws From Memorial Tournament Pro-Am, Gives Up Press Conference

No official reason was announced.

A Parking Spot in Hong Kong's Mount Nicholson Development has Sold For $1.3 Million USD
Automotive 

A Parking Spot in Hong Kong's Mount Nicholson Development has Sold For $1.3 Million USD

Apparently parking is not gratis with the development’s $100 million-plus homes.


Juan Wauters Is Sifting Through Real Life Situations
Music 

Juan Wauters Is Sifting Through Real Life Situations

The Uruguay-born, Queens-raised singer returns to a changed-New York and documents it all across 21 songs.

Nike Celebrates Swedish Football Club AIK Fotboll's 130th Anniversary With Special Air Max 90
Footwear

Nike Celebrates Swedish Football Club AIK Fotboll's 130th Anniversary With Special Air Max 90

The design nods to the club’s storied history, the Stockholm metro system and more.

NASA Is Sending New Missions to Venus for the First Time in 30 Years
Tech & Gadgets

NASA Is Sending New Missions to Venus for the First Time in 30 Years

To better understand why the inferno-like planet is so different than Earth.

Swiss Artist Accuses London Design Biennial For Copying Massive Forest Installation
Art

Swiss Artist Accuses London Design Biennial For Copying Massive Forest Installation

The centerpiece of the exhibition which features 400 trees planted in the courtyard of Somerset House.

New Balance Launches MADE "Version Series" with New MADE 990v1
Footwear

New Balance Launches MADE "Version Series" with New MADE 990v1

A celebration of the beloved 990 line ahead of its 40th anniversary.

More ▾
 
We got you covered. Don’t miss out on the latest news by signing up for our newsletters.

By subscribing, you agree to our Terms of Use and Privacy Policy.